Good news: Bitcoin is trading at an “extreme discount,” says Bloomberg senior analyst

Leading Bloomberg analyst Mike McGlone believes Bitcoin is trading at a discount. McGlone also added that the asset could become a global digital security in the foreseeable future. We also gathered opinions from other analysts about the market’s possible near-term recovery.

 

Have we passed the bottom of the market crash?

According to Forbes, Mike McGlone relied heavily on technical analysis of the 100-week moving average, one of the most reliable prediction methods. Bitcoin recently reached its lowest-ever price relative to the 100-week moving average in July.

This is an important sign that it is trading at an “extreme discount within a prolonged bull market,” McGlone said. In other words, it means we’ve probably bottomed the price, which means this asset is going up in the near term. In perfect agreement with what has been said, we are seeing a slow recovery in the price of Bitcoin in early August.

But this is only the first part of his analysis; an even more unusual statement is that the real market frenzy associated with digital cryptocurrencies is waiting for us forward. In other words, he believes that this crypto winter will be short and will end with a new and even more significant rise of cryptocurrencies.

“Bitcoin is well on its way to becoming global digital collateral in a world going that way, and Ethereum is a primary driver of the digital revolution as evidenced by making possible the most widely traded cryptos — dollar tokens,” he said.

Interestingly, these are not the words of some Bitcoin-maximalist but a person from a rather conservative environment of business analysis.

Another opinion confirming a recovery soon

Other analysts also give optimistic forecasts. So the founder of the crypto fund SkyBridge Capital echoes McGlone that BTC and ETH are now fundamentally undervalued and technically oversold, according to his analysis.

SkyBridge Capital managing partner Anthony Scaramucci said in a recent interview that the worst of the cryptocurrency bear market is over, and it happened when Three Arrows, Luna, Celsius and Voyager went bankrupt. Experts have also previously argued that this cascade of major players falling is a crucial moment of market clearing, after which a new balance will be found very soon, with a transition to further growth.

The crypto fund founder believes that Ethereum has a fair market value of about $2,800, while Bitcoin, according to his calculations, has a fair price of $40,000. SkyBridge Capital’s managing partner assured that when their funds receive additional capital, they often buy bitcoin in the current declining market.