The leading cryptocurrency is now ‘extremely discounted’, according to Bloomberg Intelligence senior commodity strategist Mike McGlone. Meanwhile, the Fed said 75 basis points and Bitcoin made a move towards $20,000.
“The leading cryptocurrency is currently extremely discounted”
Bitcoin (BTC) price is trading above $19,000 at press time. Despite making small gains, BTC remains under pressure from the broader market-aggressive Fed. Specifically, Bitcoin continues to correct in 2022. Analysts describe the decline as extreme.
In line with this, Bloomberg Intelligence senior commodity strategist Mike McGlone shared in a tweet on September 21 that the value of Bitcoin is extremely discounted. He also said that the leading cryptocurrency remains a safe asset. In particular, the strategist pointed out that as the Federal Reserve raises interest rates, investors can expect further price corrections for the remainder of the year.
McGlone remains bullish on Bitcoin (BTC)
Despite the expanded market volatility, McGlone has repeatedly emphasized that the Bitcoin price is about to skyrocket to $100,000. As we reported on cryptokoin.com, McGlone says Bitcoin is poised to rise once the current dominant macroeconomic factors end.
In the current environment, both stocks and crypto markets are depressed. According to commodity guru McGlone, cryptocurrencies are the fastest horse in the race. The analyst, who made this characterization, sees it as likely that digital assets will emerge before the current conditions.
At the same time, there are those who think in the opposite direction, despite McGlone’s bullish trend. For example, Gareth Soloway, chief market strategist at InTheMoneyStocks, sets Bitcoin’s next price target at $12,000. Accordingly, he suggests that BTC is ready for further corrections. According to Soloway, the strong performance of the dollar is hurting the possibility of Bitcoin exiting the current bear market.
The effect of the interest rate increase on the leading cryptocurrency
Meanwhile, the cryptocurrency market is showing signs of recovery as the Federal Reserve raises interest rates in line with expectations. However, the statements of Fed Chairman Jerome Powell are also important. US August CPI data came in above expectations. After disappointing inflation figures, expectations were high that the Fed would respond with a 75 basis point increase. It was even starting to gain strength among the possibilities that it would increase by 100 basis points.
However, the Fed preferred a 75 bps increase, acting in line with the majority consensus. After the Fed decision, Bitcoin rose 1.33% in the last 1 hour, rising above $ 19,600. It also posted 3.32% gains on a daily basis.
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