Bitcoin BTC/USD, the world’s largest digital currency by market capitalization, could be the greatest bull market in history at a relatively discounted price to start the second half of 2022.
That's according to Bloomberg analyst Mike McGlone. With the Bloomberg Galaxy Crypto Index (BGCI) nearing a similar drawdown as the 2018 bottom and BTC’s discount to its 50 and 100-week moving averages similar to past foundations, the risk versus reward is tilting toward responsive investors in the second half of the year, he explained.
BGCI measures the performance of large crypto assets to ascertain a general view of the market. During the bear market of 2018, BTC had nose-dived from $16,000 levels in January to nearly $3,000 levels by December. Over the next six months, the digital currency spiked up to $13,000 once again, according to data from Coingecko.
BTC is currently trading at $20,350 after making a low of $19,983 in the last 24 hours. That's a far cry from the high of $48,234 level seen in March this year, according to Coinmarketcap.
BTC could be one of the greatest bull markets in history, or the crypto may be a failing experiment in the process of being made redundant, like Crude Oil, McGlone explained.
“Our bias is Bitcoin adoption is more likely to continue rising,” he said.
McGlone likened the crash in crypto markets in the first half of 2022 to the internet bubble burst of the early 2000s, which caused the rout of several companies but also gave rise to companies like Amazon.com Inc. AMZN and eBay EBAY.
Purging the excesses was the state of all risk assets in the first half of 2022, McGlone added.
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