A senior Bloomberg analyst, Mike McGlone stated that Bitcoin is now selling at a substantial discount and might become worldwide digital collateral.
According to Forbes, McGlone focused heavily on 100-week moving average technical analysis. According to McGlone, the stock sells at an “extreme discount in a sustained bull market.”
He said that cryptocurrencies profited from the historically low-interest rates of 2021, so it’s no surprise that the rate increase also harms them.
Nonetheless, he thinks that Bitcoin and Ethereum’s performance may soon defy the rate rises and grow, as multiple factors indicate the potential of a bull market.
“Bitcoin is well on its way towards becoming global digital collateral in a world that is moving in this direction, and Ethereum is a main driver of the digital revolution, as proven by enabling the most commonly traded cryptocurrencies,” he added.
Bitcoin is in a Purchase Zone
Currently, Bitcoin is placing it in the green zone and indicating a solid purchase signal. Thus, these data suggest that Bitcoin is on the verge of a breakthrough.
Moreover, other stakeholders share the same viewpoint. Budd White, chief product officer of crypto software business Tacen, feels Bitcoin is “very undersold and in a significant accumulation zone.”
He noted that Bitcoin has shown its endurance and set a bottom around $18,000 despite trading above that level. This may be because the markets have already priced in any extra rate increase by the Fed.
The success of cryptocurrencies has already boosted the mood of investors. According to the Crypto Fear & Greed Index, fear is now represented by an index value of 31. This is far from the 19th of June when the fear level was at 6.
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