Bloomberg strategist says Bitcoin is excessively oversold

Bitcoin is trading at a significant discount in a sustained bull market. This was stated by Bloomberg Intelligence senior commodities strategist Mike McGlone, Forbes reports.

“Bitcoin, the first cryptocurrency, in July hit a record low relative to its 100-week moving average”, he explained.

The analyst highlighted the strong stock-market regime, with which Bitcoin has shown a pronounced correlation.

“There are several forces at work in the markets stronger than the stock market falling rapidly, as it did in the first half of the year,” he said.

McGlone highlighted the key role of the U.S. Federal Reserve, which pursued aggressive rate hikes in 2022. This could potentially pose obstacles for risk assets, including cryptocurrencies and equities. He urged not to fight the Fed.

“Bitcoin is on track to become a global digital store of value. Ethereum is the main driver of the digital revolution,” the expert concluded.

In July, McGlone forecast growth of digital gold over the next six months.

Earlier, Grayscale analysts forecast that the crypto winter would end by the end of March 2023.

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