Bloomberg Intelligence Senior Macro Strategist Mike McGlone shared his views on the crypto market during an interview with Daniela Cambone, editor-at-large for Stansberry Research. McGlone believes that we are heading into the final stage of the crypto bear market but it may take a while before we see a reversal. Adding that the worst of the crypto winter is likely behind us.
McGlone’s View on Bitcoin
McGlone expected the price of Bitcoin could go down in the short to medium term. He expressed his perspective by stating that Bitcoin reached its multiyear low point in recent months, but he thinks it has a further downside to go before it reaches a good value. Further highlighting the big picture that Bitcoin is an emerging asset and technology that will improve over time.
He mentioned that for now that we’re seeing some crashes similar to the Internet stocks from 2000 to 2002. He shared that the bottom could be around $10,000 to $12,000 and that would be solid support. Then eventually, Bitcoin is going to rebound and resume its upward trajectory.
McGlone shared in a tweet that the decline in Bitcoin and crypto assets since the start of the year has been putting pressure and may trigger capitulation thus it may set the stage for the year 2023.
McGlone’s View on Ethereum
Mike McGlone predicts that Ethereum (ETH) will outperform other crypto assets due to its smart contract platform’s solid fundamentals. McGlone emphasized that the price of ETH has increased twelvefold over the past three years, outperforming most asset classes and with a solid support level close to its current price.
Ethereum has made a historic upgrade called the Merge. The network’s shift from proof-of-work (PoW) to proof-of-stake (PoS) promises massive environmental benefits and it will also decrease the rate at which ETH is issued, which could be a boost for its price.
McGlone stated that at the end of 2019 before the pandemic hit, it was $100 and it’s holding good support at around $1,000. In his point of view, it might get a little bit below the support, but he fully expects ETH to come out ahead on the back of adoption, demand, and diminishing supply. Thus ETH may continue that upward course over time. The price of Ethereum is currently trading at $1,268.34, thus still up 12 times.