According to Mike McGlone, a senior commodity strategist at Bloomberg Intelligence, it may be premature to declare that the cryptocurrency bear market is over.
In a recent reportMcGlone argues that digital currencies, including bitcoin (BTC), will continue to face significant challenges due to the Federal Reserve’s current interest rate hike policy.
He believes that this policy will act as a “headwind” for most risky assets, including cryptocurrencies, and that investors may need to take out insurance to protect their portfolios.
Not a bullish version of cryptocurrencies
The analyst suggests that cryptocurrencies have yet to reach their bottom and that the strong upward trajectory seen earlier this year may have made them vulnerable to a resumption of the 2022 downtrend.
McGlone expects March to show how sustainable digital currencies are at current levels.
McGlone also notes that Bitcoin may need to break resistance around the $25,000 mark in the near future for interest in risky assets to pick up. If he doesn’t, he believes that short cryptocurrency positions may be justified.
On February 2, the price of Bitcoin topped $25,000 for the first time in six months, but then fell after hitting $25,200. For the past two weeks, the cryptocurrency has been trading in a range of $22,900 to $24,900.
However, on the morning of March 3, BTC dropped to $22,200, signaling new challenges ahead.
As crypto.news reported today, Invest Answers, an influential voice on YouTube, has just made a bold bitcoin prediction for March 2023. The channel believes bitcoin is poised for a strong rally in March, with bitcoin surging 49% in the last three months.
