- In the last 24 hours, Bitcoin gained over 5% in value following the latest development from the US Court of Appeals. Bitcoin is currently trading at $27,190.
- Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence, stated in a recent tweet, “Bitcoin $30,000 Could Be New $12,000.”
- As an important note, $12,000 was one of the lowest points for Bitcoin in 2020, and it then reached its all-time high after continuous positive growth.
The recovery in Bitcoin price has brought new hope for investors; at what price level will the bull market in Bitcoin begin?
How Will the Bull Market in Bitcoin Begin?
In the last 24 hours, Bitcoin gained over 5% in value following the latest development from the US Court of Appeals. Bitcoin is currently trading at $27,190, and a Bloomberg analyst highlighted the potential for the bull market to begin when Bitcoin reaches $30,000.
Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence, stated in a recent tweet, “Bitcoin $30,000 Could Be New $12,000.” McGlone implied that $30,000 is an important turning point for Bitcoin.
The analyst argued that if Bitcoin surpasses $30,000 again, it could indicate a reversal in the downward trend that started in 2020. Interestingly, McGlone believes that the subsequent upward trend could resemble the scenario where Bitcoin traded at $12,000. The analyst stated the following in an accompanying image to his tweet:
“Sustaining above $30,000 implies an upward reversal similar to the formation around $12,000.”
As an important note, $12,000 was one of the lowest points for Bitcoin in 2020, and it then reached its all-time high after continuous positive growth. The graph accompanying McGlone’s tweet showed this trajectory.
Although the Bloomberg analyst acknowledged this possibility, he pointed out a difference by comparing the current situation to 2020. He specifically highlighted the negative liquidity coming from financial institutions.
Negative Factors
McGlone argued that banking regulators are implementing strict measures that increase the risks of restructuring investments in the stock market. He believes that this could make it difficult for Bitcoin to sustain its upward movement.
The analyst also drew attention to the possibility of approval for a spot Bitcoin exchange-traded fund (ETF). While this event is expected to affect the price of Bitcoin, according to McGlone, the US Federal Reserve remains an obstacle. According to him, despite the economy showing signs of contraction, the Fed is implementing tight measures.
Furthermore, the analyst compared Bitcoin’s performance to that of the S&P 500. He claimed that Bitcoin declined by 10% in the third quarter, while the S&P 500 grew by 1%, and he said:
“Bitcoin can predict the typical stock decline associated with a recession.”
