Bitcoin ($BTC) and U.S. Treasury bonds have plunged to “severe discounts,” according to Bloomberg commodity strategist Mike McGlone, given the Federal Reserve’s aggressive efforts to contain inflation.
The world’s “most speculative, exorbitant, and safest assets,” which helium regarded to be beryllium BTC and U.S. T-bills, are currently trading at the highest discounts, according to a tweet McGlone published with his inferred 50,000 followers connected to the microblogging platform.
The Fed versus One Way Out? It’s unlikely that we will get through the rest of this year without experiencing many significant asset-price drawdowns given the #Fed’s sledgehammer. Bitcoin and US T-bonds, two of the world’s most speculative, expensive, and secure assets, both fell to their lowest prices.
It’s a buy zone for bitcoin
He also noted that the Puell Multiple now denotes buying. Puell Multiple calculates the ratio of the daily USD value of Bitcoin issuance to the daily issuance value’s 365-day moving average in order to determine the level of sale pressure from the miners.
It is currently in the green zone and below 0.5, which is a strong buy signal. Therefore, all of these indicators suggest that BTC is poised to break out.
Meanwhile, similar views are held by other parties. Tacen’s chief product officer, Budd White, claims that BTC is “very undersold but also in a huge accumulation zone.”
Even though Bitcoin is currently trading higher than that, he continued, it has proven to be resilient and has formed a bottom at $18,000. This may be due to the markets pricing in any additional Fed rate hikes.
Investor confidence has already increased as a result of the cryptocurrency’s performance. The current value of the Crypto Fear & Greed Index is 31, which corresponds to fear. When it was at 6 on June 19, extreme fear, this is a long cry from that.
The expert is also “bullish” on gold since he thinks that once long bond yields reach a small peak and all of the Fed’s hike expectations have subsided, gold will start to soar. He continued, “Silver will underperform in the near future.”
In November 2020, McGlone made a very accurate prediction that the price of bitcoin would surpass $20,000 and begin a parabolic surge in 2021. Before suffering a large drop last year, BTC surpassed its previous record close to $69,0000.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/10/24/bitcoin-btc-is-trading-at-extreme-discounts-says-bloomberg-analyst/