Senior commodities strategist Mike McGlone, who knows $10k, $12k and $50,000 in Bitcoin, in his recent analysis, said that despite their rough start to 2022, broader macroeconomic factors have had a positive impact on both Bitcoin (BTC) and Ethereum (ETH). He said he could shine.
Bitcoin and ETH rise as US midterm elections approach, according to strategist
In a new analysis, Mike McGlone says the US midterm elections in November and the rumble of a potential war in Eastern Europe show that the biggest cryptos may have a relative advantage over other investment classes:
As the US midterm elections draw near, a lot could happen for cryptocurrencies, especially against inflation-related commodities. Typical demand and supply elasticity and rising crude oil prices amid the risk of war in Ukraine are strong catalysts to stimulate oil’s persistent bear market. It’s the opposite for Bitcoin and Ethereum.
Mike McGlone’s report cites crude oil as “the most important commodity,” but states that Bitcoin may be poised to rise as supply and demand needs change:
Representing advancing technology, Bitcoin (BTC) is gaining comparison as a global cryptocurrency, replacing oil with decarbonization and electrification. Bitcoin may be in a unique position for permanent price increase. The first cryptocurrency on its way to becoming a global digital collateral started a revolution in the digitalization of finance, which emerged in its early days.
McGlone thinks that domestic policy decisions regarding the cryptocurrency market will also be beneficial in the coming months. The senior commodity strategist explains:
We expect US policymakers to adopt cryptos with appropriate regulations and ETFs for the following reasons: dollar dominance, jobs, votes, lots of income (taxes) and – most importantly – it will run counter to China’s dislike (to cryptocurrencies).
McGlone concludes by saying that Bitcoin’s recent rebound near the $40,000 level looks like “the floor rather than the ceiling,” and that the next significant upward threshold may indeed be $100,000. Regarding the Ethereum price, McGlone says:
Bullish fundamentals were solid and technical guidance was simple, with buyers making about $2,000 and sellers about $4,000. Ethereum could repeat last summer and revisit around $1,700.
“Both BTC and gold could grow this year”
Mike McGlone believes there is a force that can accelerate the growth of both Bitcoin and gold this year. The analyst thinks that the current decline in the stock market could prevent the Fed from raising rates, while also supporting the growth of Bitcoin and gold, both of which are safe-haven assets.
Finally, about a week ago, McGlone noted on Twitter that the two biggest cryptocurrencies, Bitcoin and Ethereum, are still in their early adoption days.
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