[ad_1]
(Kitco News) Bitcoin has developed a new low at around $ 30,000, and cryptocurrency appears on track to resume its rally towards $ 100,000, according to Bloomberg Intelligence, which is also seeing gold rise alongside crypto .
“Bitcoin appears to have built a base of around $ 30,000, which equates to $ 4,000 at the start of 2019, and we are seeing performance parallels that could put the benchmark crypto back on track towards $ 100,000,” said Mike McGlone, senior commodities strategist at Bloomberg Intelligence.
Bitcoin is looking to be set up for higher prices in the future, McGlone added, citing his technical setup.
“The longest stretch below its 20-week moving average since 2018-19 indicates that the long lows have been cleaned up in a sustainable bull market. What has changed in about three years is enough to hold the same for the major part. part of Bitcoin’s story – the price rise Supply is decreasing as demand and adoption increase in most countries that welcome open discourse and free market capitalism, ”he said.
McGlone described China’s crackdown on crypto and the US is moving towards regulation as part of the bitcoin maturation process.
“The growing dichotomy between pushing back China and the United States adding clearer rules could mark part of a new type of cold war. Countries restricting capital flows could fall behind in the process of digitizing the world. money and finance, “he said.
Bitcoin is expected to resume its bull market later this year, and gold is expected to follow cryptocurrency higher.
“The reappearance of deflationary forces indicated by falling US Treasury bond yields and the spike in commodities are adding foundation to gold and bitcoin. We are seeing digital and analog stores of value advance together,” McGlone said. in its August outlook. “Bitcoin and gold are poised to follow the resumption of the upward trajectory of 2H US Treasury bond prices, in our opinion. The odds are increasing that the 1H bearish consensus will prove temporary and provide an opportunity. for more sustainable bull markets from a haircut. “
McGlone also suggests pairing gold exposure with bitcoin for better results.
“In our opinion, bitcoin, gold and long bonds are the main assets that are expected to outperform over the past 2 months. The fact that the prices of metals and treasury bonds have been rising for decades and have recently fallen improves their relative value, but gold looks more and more bare if not associated with Bitcoin, ”he said. -he declares. “Crypto represents a rapidly evolving technology that puts pressure on inflation and supports quantitative easing, which in turn supports the stock market.”
Warning: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. This is not a solicitation to trade in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no responsibility for any loss and / or damage resulting from the use of this publication.
[ad_2]
Source link