Bitcoin could get another huge boost for this reason
After weeks of almost constant downward price pressure, the bitcoin (BTC) price has finally shown a sign of life again. Yesterday, much to the relief of many cryptocurrency investors, a large price increase finally took place. Mike McGlone, leading commodities analyst at Bloomberg, explains why he believes the bitcoin price can expect another significant boost in the near future.
Bitcoin and the Federal Reserve
According to McGlone, the current situation in the stock markets may be very positive for store-of-value assets such as bitcoin and gold. He indicates that due to the uncertain investment climate and plunging prices on the stock market, something may be set in motion that will allow bitcoin to rise significantly.
McGlone argues that the current state of the stock market is causing the United States’ central bank, the Federal Reserve, to waive their potential tightening of monetary policy to keep the stock market going.
#Bitcoin May Notch Win-Win vs. the #StockMarket –
The fact that a primary force to reverse potential Federal Reserve rate hikes — a stock-market decline — may enhance store-of-value assets like gold and Bitcoin is a basis for diversification. pic.twitter.com/WD30bSXuLo
— Mike McGlone (@mikemcglone11) February 4, 2022
One of those Federal Reserve policies would be to raise interest rates. This perspective has recently caused a lot of turmoil within both the crypto and stock markets.
According to McGlone, the scenario in which the Federal Reserve ultimately does not implement the proposed measures could turn out very well for bitcoin. It would provide an excellent opportunity for investors to diversify their portfolio. Meanwhile, bitcoin is seen by many traditional investors as a worthy store of value.
Bitcoin to $100,000?
A few days ago , McGlone indicated that he believes bitcoin could potentially bottom around $30,000. The first signs of an actual reversal are now visible and it could just be that McGlone was right.
In addition, he expects that due to the rising demand and the stagnant supply of bitcoin, the price will eventually rise to the magical milestone of $100,000. Of course, this is just a prediction and by no means a guarantee, but it’s clear McGlone has high hopes for the future.