Bitcoin one of the asset with the best performance in 2023: Bloomberg Intelligence

Bitcoin one of the asset with the best performance in 2023: Bloomberg Intelligence

Bitcoin's increase in the past two weeks has made it one of the most powerful assets of the year, according to Bloomberg Intelligence.

The conductive macrost strategist of the company, Mike McGlone, compares the rally with a similar recovery in early 2019-but in a macrouium field shrinking liquidity.

Is Bitcoin back?

in a Post on Wednesday the analyst said that the rally from Bitcoin to January 17 " could. Bloomberg's bias, he said, is both - but with a decisive difference compared to the turn in spring 2019.

"The Federal Reserve tightens this time," he said. The 5,000 Dollar swivel point about four years ago compared to $ 20,000 now could indicate Bitcoin's extended trajectory. ”

The Bitcoin price has historically moved in four-year cycles, with febrile bull runs in one year, followed by dramatic corrections in the next-in addition to less active, more modest profits in the years.

Bitcoin decreased from a maximum of over $ 19,000 at the end of 2017 to a low of around $ 3,200 in December 2018 before returning to $ 5,000 by April 2019. In his last cycle, Bitcoin achieved a maximum of $ 69,000 in November 2021 before it went back to less than $ 16,000 in November. Today, Bitcoin has already returned through its highs from 2017, which led to debate

"The decline of Bitcoin by about 80 % to the low of 2022 corresponds approximately to the low of 2018, but a significant difference is that global liquidity shrinks," wrote McGlone. "It is unlikely that there will be a deep, and the recovery for the assets described as the fastest horse in the race will be simple."

The influence of the fed

From the beginning of 2022 until now the Federal Reserve has a hastily raised interest rates to combat the record-high VPI inflation in the United States. The resulting global liqu. 400 "> Cryptocom to reduce significantly.

Above all, falling prices have triggered a downward spiral of bankruptcy and compulsory liquidations, from credit companies to mining companies to stock exchanges ftx

In comparison, the Federal Reserve lowered interest rates in 2019 when Bitcoin built its base by $ 5000. "Another 60 basis points on climbs that are expected by June are the Bitcoin resistance," said McGlone.

The rally from Bitcoin This month was largely inspired by a promising December CPI report, the entered

However, some analysts doubt that this is the case. David Kelly-Asset Management Chief Global Strategist for JP Morgan Chase- predicted Last week that the Fed will continue to raise interest rates by May, then it will keep its key interest over 5 % by the end of the year.

"The question is: Will the economy be strong enough to keep interest rates at this relatively high level?" Kelly asked at the time.

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