Bloomberg analyst Mike McGlone writes that despite nearly 50% correction, Bitcoin fundamentals remain strong as BTC is forming a base around $30,000. The strategist also expects a Bitcoin ETF approval ahead this year.
Bitcoin (BTC) price has corrected nearly 50% within a month from its all-time high of $64,000. The world’s largest cryptocurrency has also been trading under downward pressure for quite some time. BTC price has been oscillating in the $35K-$40K range for a while. Although the investor excitement has dropped, Bloomberg’s senior commodity strategist Mike McGlone remains bullish on the crypto. The strategist recently shared the Bloomberg Crypto Index analysis for the month of June 2021, in this report, McGlone states that BTC at present is more “stronger, greener and less extended” in comparison to April 2021.
“Bitcoin’s 2021 Foundation Is Firm. Toward the end of 2020, Bitcoin’s history suggested the crypto would move sharply higher in 2021, and we see improving supports for this. In 2020, 260-day volatility dropped to its lowest ever vs. most major asset classes, notably the S&P 500. Add last year’s supply cut, the migration to institutional portfolios, Ethereum futures and the launch of ETFs in Canada and Europe, and we see greater potential for Bitcoin to head toward $100,000 than sustain below $20,000.”
The report notes that after BTC’s 50% correction, it seems to be forming a strong base at $30,000. At current levels, Bitcoin is pretty close to 2020’s ending price.
Bloomberg Expert about BTC ETFs
The Bloomberg strategist mentions that it’s just a matter of time that the US SEC will approve the BTC ETF. Taking a shot at China’s authoritarian and centrally-planned economy, McGlone writes:
“There’s a high probability of the US embracing technology and properly regulating cryptos, as we see it, opening the door in 2021 for Bitcoin exchange traded funds. Crypto assets emphasize the drawbacks of an authoritarian, centrally planned economy like China, lacking free flow of capital and open discourse. Continued SEC opposition to a futures-based Bitcoin exchange-traded product makes little sense”.
Besides, the SEC is already reviewing Bitcoin ETF applications from VanEck and WisdomTree. One thing that has stopped the SEC from approving the Bitcoin ETF is the massive price volatility of the asset class. And Bitcoin has remained largely volatile throughout the recent correction.
Besides, it has also shown vulnerability to tweets from billionaires like Elon Musk. Also, the Tesla chief recently made a new Bitcoin tweet suggesting that he might be parting ways with the world’s largest crypto. Well, this has once again put Bitcoin under pressure with the BTC price correcting 6% further today.