Bloomberg analyst: the bear market for cryptocurrencies is not over yet
Blоomberg analyst Mike McGlown: the bear market for cryptocurrencies is not over yet
According to Mike McGlone, bitcoin may need to break through the $25,000 level in the near future for interest in risky assets to recover
Bloomberg Intelligence senior commodities strategist Mike McGlone thinks it's too early to tell if the bear market for cryptocurrencies is over. He published a report in which he argues that bitcoin, as well as other risky assets, will continue to be heavily influenced by continued interest rate hikes by the U.S. Federal Reserve (Fed).
"Fed policy tightening, despite the risk of recession, could be a strong headwind for most risk assets, particularly cryptocurrencies. Investors who prefer to buy and hold may need insurance as the bear market may not be over yet," the analyst said.
He suggested that cryptocurrencies have yet to hit their lows. According to McGlone, a rise in the prices of these assets early this year could make them "vulnerable to a renewed downward trajectory in 2022." According to McGlone, March will show just how resilient digital currencies are now.
The analyst also noted that bitcoin may need to break through resistance around the $25,000 mark in the near future for interest in risky assets to recover. Otherwise, he called tactical short positions on cryptocurrencies justified.
Within two weeks, the first cryptocurrency was trading in the range from $22.9 thousand to $24.9 thousand. On March 3, BTC rate fell to $22.2 thousand. At 17:30, the coin price is near the mark of $22.4 thousand.
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