Despite Interest Rate Hike, Bitcoin is at an Inflection Point – Bloomberg Strategist

As Bitcoin continues ranging between the $29K and $30K zone, the leading cryptocurrency’s inflection point is now pegged at $30,000, according to Mike McGlone, the senior commodity strategist at Bloomberg Intelligence. (44).jpg

McGlone pointed out:

“Inflection Points: Bitcoin at $30,000 vs. Nasdaq at 13,000 – An emboldened Federal Reserve (Fed) fighting inflation, despite an almost 30% drawdown in the Nasdaq 100 Stock Index, is a primary headwind for Bitcoin and the crypto market at the start of June.”


Source: Bloomberg Intelligence


Given that Bitcoin is sitting at an inflection point, McGlone believes that the Federal Reserve’s continued interest rate hike is the primary stumbling block to BTC’s price surge. 


On May 4, the Fed increased the interest rate by 0.5%, the highest in twenty-two years, to tame soaring inflation. Therefore, this trend might continue until the 2% inflation rate target is achieved.


Since Bitcoin has been hovering around the $30,000 mark for a couple of months, it has emerged as a significant level.


Raj Chowdhury, the CEO of crypto trading platform PayBito, recently commented that BTC was steadily holding the $30K zone despite the stablecoin crash and crypto meltdown because of its unique decentralized proof-of-work (PoW) mechanism. He noted:

“Despite its apparent flaws, Bitcoin’s architecture makes it a modern-day marvel immune to global financial policies. The benefits far outweigh the cons, evident from its increasing acceptance across multiple nations and global organizations.”

Is Bitcoin staring at a reversal?


Since Bitcoin has been consolidating for some time, crypto analyst Rekt Capital believes the maiden cryptocurrency might be edging closer to a reversal based on the relative strength index (RSI).


The analyst explained:

“BTC RSI is now entering a period that has historically preceded outsized Returns. On Investment for long-term investors. Previous reversals from this area include January 2015, December 2018, and March 2020 All Bear Market bottoms.”




Therefore, time will tell how Bitcoin plays out in the short term.

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Market May Be Suffering But Bitcoin And Ethereum Will Pull Back Stronger, Bloomberg Analyst

Bitcoin and Ethereum have led the market in the recent downturns that have rocked the market. These two digital assets are no doubt market movers in their own right and as such, uptrends or downtrends begin with them. It has raised concern among investors who believe that the market is finally heading into a stretched-out bear market. However, not everyone believes this as some believe the current downtrend is only temporary.

Mike McGlone On Bitcoin And Ethereum

Mike McGlone is one of the leading Bloomberg analysts. Focused on the financial market, he authors a newsletter that shares his thoughts around various markets, including stocks and the crypto market. McGlone is currently one of the people with the most optimistic view of the market despite the various dips that have rocked the space. Most especially on the top digital assets in the crypto market.

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McGlone who was on The Wolf of all Streets podcast shared some interesting thoughts on the market, putting the analyst at an overall bullish position for bitcoin and ethereum.

Bitcoin price chart from

BTC down to $38K | Source: BTCUSD on

The analysts point to the correlation with the stock market. This, he explains, is getting ready for a pullback and when this happens, bitcoin and by extension, ethereum, would benefit from this correction.

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“Here’s my prediction: the markets pull back,” said Mike McGlone. “We finally get a 10%, maybe 20%, correction in the stock market. All correlations are one, which is usually the way it works. Bitcoin comes out better off for it. Ethereum, potentially too.”

This pullback though is only reflected on the top two cryptos which McGlone expects to recover after this.

Other Cryptos May Not Fare Well

Talking about other cryptocurrencies, the analyst took a more bearish stance on them. The positivity displayed in the podcast towards top coins bitcoin and ethereum did not translate to the rest of the market which he does not expect to fare well despite the pullback.

Related Reading | Ethereum Fee Averages Remain Above $30 Despite 35% Drop. Price Pump Incoming?

McGlone especially focused on dog coins which were arguably the winners of 2021. The craze which saw various meme tokens with no utility whatsoever soar to billions of dollars in valuation was referred to as “stupid” by the Bloomberg analyst.

“The rest of the space, we do have to admit, the speculation you saw in the dog coins last year was indicative of this. It’s just stupid and we’re going to tell the story to our grandkids,” he said.

Even for a digital asset like Solana which had a largely successful year, McGlone did not seem excited about it. He lumped SOL in with the dog coins, which he said were the riskiest of assets. “The bottom line is they are the riskiest of assets,” said McGlone. “There’s massive speculation. I mean the dog coins and even in things like Solana,” he added.

Featured image from Bitcoin news, chart from


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Bitcoin and Ethereum In for Bullish 2022 As Money Managers Forced To Allocate to Crypto: Bloomberg’s Mike McGlone

Bloomberg’s head commodity strategist says the crypto markets look poised for a bullish 2022, with Bitcoin and Ethereum set to lead the charge.

In the December edition of Bloomberg’s “Global Cryptocurrency Outlook,” Mike McGlone says that given crypto’s relative outperformance of other asset classes, many money managers may be forced to get involved.

“Past performance is no indicator of future results, but when a new asset class outperforms incumbents, naysayers have little choice but to join in. We see this process playing a primary role in 2022, as money managers may face greater risks if they continue to have no portfolio allocations to cryptos.”

McGlone says that BTC looks like it’s still on schedule to break the six-figure mark next year, partially on the back of rapid adoption from various economies and markets.

“Bitcoin appears to be on a trajectory for $100,000. We see it as more of a question of time, notably due to the economic basics of increasing demand vs. decreasing supply. There are ample examples of Bitcoin simply staying on course in 2022 of its process of adoption into the mainstream. U.S., Canadian and European exchange-traded funds and futures, migration into the 60/40 mix and legal-tender status in El Salvador point to a bull market in global adoption.” 

The analyst says the digital asset markets are being driven by three main “stalwart” components, which are Bitcoin, Ethereum, and stablecoins, which he calls “crypto dollars.” According to McGlone, altcoins like Shiba Inu (SHIB) and Dogecoin (DOGE) show that the crypto markets are ripe for speculation, but that BTC, ETH, and USD-backed stablecoins will continue to maintain dominance.

In the long term, the commodity strategist says that Bitcoin could ultimately find a stable price somewhere in the neighborhood of 100x the price of an ounce of gold, which right now would be $178,300.

“A potential path for the Bitcoin price is to stabilize around 100x an ounce of gold and for volatility to resume its downward trajectory, if past patterns repeat.”

Source: Bloomberg

The full Bloomberg report can be read here.

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Ethereum ‘has to bounce’ as ETH bulls pin $5K rally hopes on critical support channel

Ethereum’s native token Ether (ETH) could see yet another strong rebound in the sessions ahead as its price falls into a trading zone with a recent history of attracting buyers.

The rising trendline has been triggering ETH’s price rebounds since the beginning of October 2021 and comes as a part of a broader Ascending Channel range.

ETH/USD four-hour price chart featuring the Ascending Channel setup. Source: TradingView

As a result, Ether’s path of least resistance has been to the upside despite pullbacks at the Channel’s upper trendline, with its quarter-to-date returns currently sitting at over 38%.

Most recently, the rising trendline was instrumental in limiting selloffs that followed the Ether price’s rally to a new record high above $4,870. That prompted analysts to expect another strong price rebound in the future, with a “swing long” setup posted by FOREXN1 on TradingView calling for a bull run to $5,000.

ETH/USD eight-hour price chart featuring “swing long” setup. Source: FOREXN1, TradingView

MacroCRG, a Twitter-based independent market analyst, said Ether “has to bounce” as it manages to hold the rising trendline as support following the latest price pullback.

Meanwhile, another analyst Pentoshi also anticipated a rebound but discussed the prospects of corrections below the rising trendline. Excerpts from his Nov. 12 tweet:

“I would love a 20-30% wipeout on alts. Usual bull run dip. Just bc I want it doesn’t mean it will happen. Greed to fear, please.”

Pentoshi’s downside target in the event of extended price correction was near $4,000, as shown in the chart below.

ETH/USD four-hour price chart featuring Ascending Channel’s bearish breakout target. Source: Pentoshi, TradingView

Macro fundamentals support ETH bulls

Ethereum’s ability to limit price corrections and — atop that — forming new highs appears to have more than just technical factors behind it.

Chris Weston, head of research at Pepperstone Financial Pty, cited fears of high inflation as the common denominator that has boosted demand for potential hedging assets across the crypto market, leading to Ether’s 500%-plus and Bitcoin’s 130%-plus price rallies in 2021.

To investors, “crypto is where the fast money is at,” Weston said in a note.

Additionally, last week, Mike McGlone, senior commodity strategist at Bloomberg Index, said he expects a $5,000 price for Ether, saying that investment “portfolios of some combination of gold and bonds appear increasingly naked without some Bitcoin and Ethereum joining the mix.”

The analyst cited declining supply as a major bullish backstop for Ether.

Namely, Ethereum’s software upgrade, dubbed “London Hard Fork,” in August implemented a code-change that started burning a portion of gas fees paid to miners via ETH, effectively reducing the supply. 

Related: Ascending channel pattern and Ethereum options data back traders’ $5K ETH target

The upgrade has resulted in the removal of over 860,500 ETH tokens — now worth over $3.2 billion — since implementation, according to data provided by UltraSound.Money. At the current rate, the Ethereum network expects to burn 5.3 million ETH tokens every year versus 5.4 million issued.

Ethereum fee burn. Source: UltraSound.Money

McGlone noted that a declining supply rate would keep Ether on its bullish course against rising demand. Excerpts:

“Simply staying the course is the more likely outcome, as we see it. Ethereum has joined Bitcoin with a supply trajectory that is in decline by code. The first-born crypto is the store-of-value, and the No. 2 is the DeFi building block.”

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Every investment and trading move involves risk, you should conduct your own research when making a decision.