Bitcoin is now at “severe discounts,” according to a commodities veteran
Despite slight advances to trade over $19,000 at the time of writing, the price of Bitcoin (BTC) remains under pressure due to market anxiety anticipating anticipated interest rate rises. Notably, Bitcoin’s price has continued to drop in 2022, with experts characterizing the decline as severe.
Mike McGlone, a senior commodities analyst at Bloomberg Intelligence, tweeted on September 21 that he believes Bitcoin’s value has fallen to an extreme discount while maintaining that the flagship cryptocurrency remains a secure asset.
Notably, the expert said that investors should anticipate further market corrections for the remainder of the year due to the predicted rate hikes by the Federal Reserve.
“Faced with a Fed sledgehammer, it is doubtful that the remainder of this year would pass without more major asset-price declines. Bitcoin and US Treasury bonds, the world’s most speculative, risky, and secure investments, have fallen to enormous discounts,” he remarked.
McGlone has frequently emphasized that the Bitcoin price is on track to surge above $100,000 despite the prolonged market turmoil. According to Finbold, McGlone thinks Bitcoin is prepared to take off once the present macroeconomic conditions subside.
Similarly, despite McGlone’s positive stance, InTheMoneyStocks.com’s chief market analyst Gareth Soloway indicated that Bitcoin is due for a further decline with a next price objective of $12,000.
According to Soloway, Bitcoin’s ability to escape the present bear market is limited by the dollar’s strong performance.
With the Federal Reserve expected to boost interest rates, the cryptocurrency market anticipates that Bitcoin and other assets will continue to decline. This comes after the United States posted dismal inflation numbers in August, with a 75 basis point increase in play.
At the same time, Bitcoin is susceptible to a further decline below $20,000 USD. At press time, the leading cryptocurrency was trading at $19,200 after 24-hour increases of almost 1%.