The Magazine for Asian Investors
Bitcoin prices fell 0.84% today (Aug. 2), moving to $23,187.41.
The bitcoin price moved into negative territory this morning after the Dow Jones Industrial Average fell in a narrow 46-point range on Monday (Aug. 1). Economic data from the U.S., Europe and China indicated weak consumer demand under inflationary pressure and that the economies are likely to slide into recession
- The Dow Jones Industrial Average fell 46.73 points, or 0.14%, to close at 32,798.40.
- The S&P 500 was down 11.66 points, or 0.28%, to close at 4,118.63.
- The Nasdaq fell 21.71 points, or 0.18%, to close at 12,368.98.
Mike McGlone, crypto analyst at Bloomberg Intelligence, says the Fed is raising interest rates and confirms that the bitcoin price will reach $100,000 in the second half of 2022.
Bitcoin and cryptocurrency markets reacted positively to the Federal Reserve’s recent 75-point rate hike, which sent Bitcoin to $24,000.
Mike McGlone says the upcoming Fed meeting on interest rates should set the stage for Bitcoin to adjust better than other market assets. And he noted that Bitcoin could enter a recovery phase more quickly after the big sell-off in 2022.
According to strategists, bitcoin can be considered the “fastest horse in the race” with the highest risk compared to other assets. However, it should be noted that Bitcoin has technology and features for faster adoption. And along with decreasing supply, assets tend to rise and outperform other investment products.
McGlone said the institution is likely to cut interest rates as the global economy worries about a possible recession.
“The next meeting is on September 21, which leaves plenty of time to evaluate the new data, the waning of commodities and the onset of a recession. It could affect interest rates and things used to store wealth, such as U.S. government bonds, gold, and bitcoin.”
McGlone still insists that Bitcoin will reach the $100,000 mark and will likely be the best-performing asset in the second half of 2022.
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Tuesday, August 2, 2022