The Fed, the ongoing crypto winter, and the FTX collapse have all begun to erode investor confidence in the market. While everyone waits for a trend reversal, one analyst predicts what will happen to the cryptocurrency sector next.
According to Mike McGlone, who is the commodities strategist for Bloomberg, the trend reversal in the cryptocurrency market may take some time. He added that the worst of the crypto winter is probably behind us.
In a recent interview with Stansberry Research, He said that we might be in the final stages of the ongoing bear market, and typically such bear markets according to him will ‘make you lose your hair and take money from everybody and they will be volatile and difficult.’
“Crypto has already hit 80% of support, and you don’t want to be too bearish when something is down 80%,” he advised.
He said that this is not a crypto winter and added that it’s a ‘everything winter’ but except for one asset class. “This an everything winter, except for one asset class. Those are commodities. Commodities have to go down. If they don’t, the Fed is going to keep tightening until they do, and so that that’s to me the way I look at it.”
Ethereum to start an upward trajectory?
Talking about the second largest cryptocurrency, McGlone recalled a time when Ethereum was trading at $100 in late 2019. According to him, Ethereum will grow due to the strong foundation of the smart contract platform. He added that the currency is still up 12X and it is holding a good support at $1000.
“I fully expect that to come out ahead and to continue that upward trajectory over time,” he added
“The important thing to remember… is the dwindling and certainly dwindling supply of Bitcoin and Ethereum, the two giants in the space, and adoption and demand are on the rise. I expect adoption to pick up after the bumps in the road.” The point will increase, and prices will go up over time,” he concluded.
