Bitcoin (BTC) is experiencing an extensive bear market in tandem with the rest of the crypto markets; this has been the general consensus. Nonetheless, Bloomberg begs to differ. The media firm recently mentioned that, contrary to popular belief, BTC is still currently in a bull market, but trading at a discounted price.
Bloomberg Intelligence report says the Bitcoin bull market is still on
Bloomberg Intelligence released a report Tuesday which analyzed the global financial scene. The report had a look at the current conditions in traditional finance and the crypto markets, especially BTC. According to the report as shared by Senior Commodity Strategist at Bloomberg Intelligence Mike McGlone, BTC is still in a bull market.
Sept. #Cryptos Outlook- There are few more powerful forces than stocks declining at high velocity, particularly with the #Fed tightening as the world leans toward recession. Cryptos are a minor part of the ebbing tide but not from an advancing technology, leading-indicator status pic.twitter.com/0Bnj4saAfm
— Mike McGlone (@mikemcglone11) September 6, 2022
The report notes that, while the asset is still in an “elongated” bull market, it is trading at a discounted price. According to Bloomberg, the Federal Reserve’s measures at combating growing inflation are negatively impacting risk assets. The report further asserted that the crypto markets are going to stage a recovery when the dust from the Fed tightening settles.
Conversely, Bloomberg believes the Crude Oil market has entered a full-fledged bear market. The report highlighted crude oil’s recent underperformance, noting that its value below 2008 high price confirms the suspicion of a bear market. Additionally, Bloomberg asserted that the crude oil market could contribute to the recovery process of BTC.
BTC is currently at a delicate position, having broken below the $20k support
It is important to note that Bloomberg Intelligence made a similar assertion about BTC sometime in May of 2021. Following an ATH of $63k in April, BTC faced an aggressive rejection along with the rest of the crypto markets. BTC erased all previous gains, declining by 45% to a low of $34k in May. Panic spread across the community, but Bloomberg Intelligence remained bullish.
#Bitcoin’s Advantage vs. #Equities: A Discounted Bull Market – The May 19 decline of virtually all assets on the back of #Bitcoin showed the crypto has entered the mainstream, with potential outcomes tilted in its favor, in our view. pic.twitter.com/XR1o2lzQFv
— Mike McGlone (@mikemcglone11) May 21, 2021
According to the 2021 report which was also shared by McGlone, BTC was only in a discounted bull market. The report then also highlighted Bitcoin’s advantage over traditional equities. BTC later went on to stage another rally that took it to a new ATH of over $68k in November of that year.
Despite the increasing bearishness in the markets, the Bloomberg report appears bullish on BTC. At the time of reporting, Bitcoin is currently changing hands at $19,407, down 0.51% in the past 24 hours. The asset has broken below the support at $20k, and is currently in a delicate position. What happens in the next few days will immensely contribute to the asset’s direction from here.