After the price of BTC rose to USD 21,000, analysts made bullish predictions for the second half of 2022. Mauricio Bartolomeo believes that the Bitcoin bearish market could end if the Fed stops raising interest rates.
The price of Bitcoin (BTC) recently exceeded the USD 21,000 level, allowing buyers to make profits over the weekend. That happened after it dropped to USD 17,600, its lowest point of the year. That optimistic news led some long-term bullish predictions to emerge within the crypto market.
Amid a wave of bearish forecasts, renowned commodity analyst Mike McGlone brought some hope to the Bitcoin market. He said the fall in the price of risk assets in the first half of 2022 is raising inflation dramatically.
The expert knows this may lead pre-COVID-19 devaluation forces to re-emerge in the second half of 2022. Therefore, he thinks the primary beneficiaries may be Bitcoin, gold, and long US Treasury bonds.
McGlone explained that there might be a maturation of the Bitcoin market as the stock market is in the red. He finds that the long-term volatility of stock indexes, like the Nasdaq 100 Index, is higher than with Bitcoin.
He recognizes that Bitcoin is in adulthood as he predicts a turbulent stage for stocks, bonds, and commodities. Likewise, he attributes the current bearish trend of the pioneering cryptocurrency to a typical drawdown.
It is not the first time Bitcoin has suffered sharp depreciation of up to 93% before overcoming that losing streak with an all-time high. This month marked the 11th anniversary of the first considerable rise in its price, which ended up with a terrible collapse. Although that drop wiped out almost all the growth it had obtained, the cryptocurrency managed to recover and exceed that value.
Bullish Predictions Re-Emerge as Bitcoin Slightly Recovers
Mike McGlone recently anticipated that the US Federal Reserve (Fed) might not raise interest rates any further. Considering that the 75-point increase announced would be the last, the fall in the price of risk assets would complete the economic adjustment.
Likewise, the co-funder of Ledn, Mauricio Di Bartolomeo, expressed that he believes the bearish market of Bitcoin could end in three months. The businessman agrees with McGlone in that the Fed should first stop raising interest rates, adding to the forecasts of the analyst.
According to McGlone, the economic situation in 2022 resembles the 1929 crash, the most catastrophic in history. He said it characterized itself by having aggressive rate hikes despite the drop in the stock market, global GDP, and consumer confidence.
The well-known crypto market analyst TechDev also made a bullish prediction about Bitcoin. He commented that the direction of the cryptocurrency has potential symmetry with its behavior before the considerable rise in 2013. That scenario aims to sweep away the uncertainty in the market, where extreme fear remains.
Bitcoin is trading at around USD 20,097 and has accumulated a 6.1% loss over the last 24 hours. While its daily trading volume is above USD 23.38 billion, its market capitalization is about USD 383.69 billion, according to CoinGecko.
By Alexander Salazar
