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HomeCrypto NewsMarketBloomberg Analyst Says Bitcoin Bull Market May Begin at $30k as It Did at $12k in 2020

Bloomberg Analyst Says Bitcoin Bull Market May Begin at $30k as It Did at $12k in 2020


A top crypto analyst from Bloomberg says Bitcoin may start a bull market at $30k, but Fed tightening could be an obstacle.

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Bitcoin is up over 5% in the last 24 hours following a recent development from the US Appeals Court. Since Bitcoin now trades at $27,386, a Bloomberg analyst has argued the potential of the bull market starting with Bitcoin hitting $30,000.

Bitcoin Bulls Resuming at $30k

In a recent tweet, Mike McGlone, Senior Macro Strategist for Bloomberg Intelligence, proclaimed, “Bitcoin $30,000 May Be New $12,000.” 

McGlone implied that $30,000 is a key pivot level for Bitcoin. The analyst argued that Bitcoin moving back above $30k could signal a reversal in the downtrend that started in 2020. Interestingly, McGlone believes the ensuing uptrend would be similar to the scenario that played out when Bitcoin traded at $12k.

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The analyst remarked in an image accompanying his tweet:

“Sustaining back above $30,000 would indicate a reversal upward akin to a similar pattern around $12,000 in 2H20.”

Notably, $12k was one of Bitcoin’s lowest points in 2020 before it sustained constant positive growth to its all-time high. The chart accompanying McGlone’s tweet illustrated the trajectory. 

While the Bloomberg analyst acknowledged this possibility, he pointed out a key difference this time compared to 2020. He particularly noted the presence of unfavorable liquidity from financial institutions. 

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Negative Factors

McGlone argued that banking regulators are pursuing tightening measures that increase the risks of rolling over investments within the stock market. He believes the situation could make it difficult for Bitcoin to sustain an upside move.

Furthermore, the analyst acknowledged the possibility of a spot Bitcoin exchange-traded fund (ETF) approval. While the event is expected to impact Bitcoin price, McGlone believes the US Federal Reserve is still an obstacle. 

According to him, the Fed pursues stringent measures even though the economy seems to be leaning toward contraction. 

Moreover, the analyst compares Bitcoin’s performance to that of the S&P 500. He argued Bitcoin is down 10% in the third quarter of the year compared to 1% growth for the S&P 500.

“Bitcoin may be anticipating a decline in equities typical for a recession,” McGlone submitted.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Abdulkarim Abdulwahab
Abdulkarim Abdulwahabhttp://thecryptobasic.com
Abdulkarim Abdulwahab is a blockchain writer with a specific interest in journalistic writing. He covers breaking events in the crypto community and blockchain industry. Over the past year, he has published over 1,500 short-form and long-form content for Web3 publishing firms.

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