Bloomberg analysts don’t seem to agree with the crypto community on Bitcoin’s current conditions. At the same time, everyone else has decided that BTC has sunk deep into a steadfast bear market and hopes for the return of the bulls; a recent Bloomberg report suggested that the firstborn crypto is still in a bull market.
The Bloomberg report suggests BTC is currently undervalued
Mike McGlone, a senior strategist at Bloomberg Intelligence, shared the report on Twitter Tuesday. The report addressed the growing concerns prompted by the collapsing state of the financial markets. According to Bloomberg Intelligence, the trend of macroeconomic policies from the Federal Reserve is the major contributing factor to the recent financial predicament.
The Fed has recently engaged in interest rate hikes to fight against surging inflation. Unfortunately, these hikes in interest rates are not without their adverse effects. In this case, the financial markets have received the sharp end of the sword. BTC and other crypto assets have not been spared.
Nonetheless, despite BTC’s crash to two-year lows, the Bloomberg report insists that the asset is still in a bull market. The report noted that BTC is only trading at a discounted price. This implies that the asset’s current value is a steal, as it is currently undervalued. Bloomberg further mentioned that BTC and the rest of the crypto markets would recover when the dust from the Fed policies settles.
Bitcoin has not been performing favourably of late
The Bloomberg Intelligence report also addressed the current condition of crude oil. Unlike BTC, the report mentioned that crude oil has fallen into a full-blown bear market. The report predicted further declines in the price of crude oil. Nonetheless, “crude oil decline may fuel Bitcoin recovery,” it stated.
Bloomberg released an identical report last year when BTC had fallen from the all-time high of $63k to a value below $35k in May. While the crypto community panicked, the Bloomberg Intelligence report noted that BTC was in a “discounted bull market.” Six months later, BTC surged to a new all-time high above $68k in November.
Whether or not Bloomberg’s recent report will be received with a similar occurrence remains to be seen. BTC has not been performing favourably of late. The asset is currently consolidating below the support at $20k. At the time of reporting, BTC is trading at $19,114, dipping by 3.61% in the past 24 hours.
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