Crypto Market Optimism Rising After July Performance
Despite the ever-present threat of arbitrary regulatory interference in the crypto markets, an increasing number of voices are getting optimistic about crypto in general and Bitcoin in particular after three quarters of chaos.
“Eyeing potential performance in the second half of 2022, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, left little doubt as to how Bitcoin in particular would fare.
“Hints that the Federal Reserve would address rate hikes on a “meeting by meeting basis,” as per Chair Jerome Powell this week, “may mark the pivot for #Bitcoin to resume its tendency to outperform most assets,” he argued on social media.
“’July marked the steepest discount in Bitcoin history to its 100-and 200-week moving averages, with implications for it to recover,’ he added about the 200-week trendline:
“’I see risk vs. reward tilted favorably for one of the greatest bull markets in history.’”
Some traders were cautious early Monday, but there are a lot of such optimistic voices emerging.
“The economist and fund manager Dan Tapiero, who has more than 25 years of experience, shared his opinion on the best time to buy Bitcoin for a long-term retail investor who is willing to gain exposure to the digital asset market.
“Tapiero offers investors a Puell Multiple indicator, which divides the daily coin issuance of BTC by the one-year moving average. The math behind the indicator is not the most important thing here, as the indicator’s performance says it all.
“The last 4 times, the Puell Multiple showed the correct point of each reversal on the market, including the $3000 BTC plunge in 2018 that would bring an enormous profit to anyone who made a purchase right at the bottom and then sold at the most recent ATH of $69,000.”
We agree with the optimists in the long-term.
As we’ve said before, Bitcoin beat the most recent brutal CPI increase as well as the S&P 500 — just two recent examples.
We believe in Bitcoin as an investment vehicle, regardless of its limits for other uses. The chaos we’ve seen in the market will pass as the industry works through its early stage growing pains.
