Bloomberg Intelligence believes that if the Bitcoin market turns in a bullish direction, it may be more stable than before, and the current June prices will one day become cheap.
Bitcoin tried to start recovering after its short-term decline below $ 30,000 and the elimination of all profitable trades for the year who did not have time to exit positions. Yesterday, it traded above the level of $ 33,000, which is 15% more than last year.
According to McGlone, this cryptocurrency is setting a new trading range.
Investors who prefer to buy on a long-term basis are gaining momentum in relation to the reference cryptocurrency.
In addition to this, China's tough measures imposed against bitcoin mining will eventually play a role in favor of increasing the price for long-term investments by limiting supply.
It is worth noting that China's state-run news agency Global Times reported over the weekend that more than 90% of China's bitcoin mining capacity would be shut down soon.
Moreover, the People's Bank of China said it has called on major banks and Alipay, a payment service operated by Ant Group, a subsidiary of Alibaba, to take tough measures against cryptocurrency trading.
McGlone said that in terms of future price direction, the cryptocurrency is more likely to return to $ 40,000 rather than drop to $ 20,000.
Another factor supporting bitcoin is the growth of global debt relative to GDP and widespread quantitative easing, combined with the digitalization of finance.
"The world is moving to digital technologies at about the same pace as the growing levels of monetary and fiscal incentives. Now, there are favorable macroeconomic trends for the growth of the bitcoin price," McGlone said.