February Cryptos Outlook - Bottoms are Rarely Easy
The crypto market could be facing its “first real recession,” and milestones similar to the invention of Bitcoin (BTC) cannot be ruled out, a well-known Bloomberg strategist has predicted.
I'm not so sure about this. As another example, it took a few years after the Fed was created for it to truly screw up the money system. It then warranted inventing another organ of disruption: the SEC. Not sure it requires more novel-tech now, it may be a major legal disruption.
The note screenshotted in McGlone’s tweet further pointed out that the Nasdaq 100 index, a tech-heavy stock index that bitcoin tends to correlate with, is now trading right around its 200-week moving average. Such a price level remains “relatively lofty based on the history of US recessions,” the note said.
Bitcoin is also a hike above its 200MDA. Indeed, looking at the TradingView charts, today is the Golden Cross, with the 50DMA crossing above the 200DMA. This is often a cause for cheer, but with market being range-bound for many months, the two averages will inevitably meet and cross over at some point. What isn't clear is whether they will dance around each other a couple of times before launching towards a new trend.
Performance: Bloomberg Galaxy Cypto Index (BGCI)Jan. +42%, One-year to Feb. 2: -42%
Bloomberg Galaxy DeFi Index (DeFi)Jan. +51%, One-year to Feb. 2: -48%
;-)
This is interesting tho, as he thinks ETH staking will increase post-Shanghai:
Altho thru 3rd parties and derivative tokens, as few have the min 32 ETH.
Not sure that will hold true as ppl can do that already.