Bloomberg's senior commodity strategist believes that cryptocurrency assets that got off to a tough start in 2022 could have a positive impact on bitcoin (BTC) and ethereum (ETH) in broader macroeconomic conditions, despite the tough start.
Mike McGlone shares a new analysis that suggests the impact of November's U.S. midterm elections and a potential war in Eastern Europe could have a relative advantage for leading cryptocurrency assets over other investment classes.
"With the U.S. midterm elections approaching, a lot could happen to cryptocurrency assets, especially inflation-related commodities. Due to typical supply and demand elasticities, higher crude oil prices amidst the risk of war in Ukraine are a powerful catalyst to spur a continued bear market in oil. The opposite is true for bitcoin and ethereum (ETH).
The report mentions crude oil as the "most important commodity," but notes that bitcoin could rise as demand and supply change.
"Bitcoin (BTC) is an asset that represents advanced technology and continues to gain comparisons as a global digital asset as oil is replaced by decarbonization and electrification.
Bitcoin could be in a unique position for permanent price increases. The first cryptocurrency to become a global digital pledge could spark a revolution in the digitization of finance that came early on."
McGlone believes that domestic policy decisions regarding the digital asset space will also be beneficial in the coming months. The analyst explains the issue as follows.
"For the following reasons, US politicians need to invest in cryptocurrencies through proper regulations and ETFs. [borsada işlem gören fonlar] We want them to accept it: dollar dominance, jobs, votes, a lot of revenue (taxes), and most importantly, it will go against China's antipathy."
McGlone concludes that bitcoin's recent rally around $40,000 appears to be "more than a ceiling" and that the next significant rise could indeed be $100,000.
Regarding the Ether price, he said, "The bull market fundamentals are solid and the technical guidance is simple, with buyers making about $2,000 and sellers making about $4,000. Ether could repeat itself last summer and get back to around $1,700."
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Each investment decision is the responsibility of the individual. Finally, Koinfinans and the author of this content are not responsible for individual investment decisions.