Mike McGlone explained on Twitter that the Galaxy Crypto Index, which reflects a basket of the largest cryptocurrencies to track overall market performance, reflects overall market behavior since the bottom of the 2018 bear market:
“The risk-reward ratio is likely to be attractive to investors in the 2nd half as the Bloomberg Galaxy Crypto Index approaches a similar bottom to the 2018 bottom and Bitcoin drops below the 50- and 100-week moving averages in a similar fashion to the past.”
Mike McGlone explained that he likens the current state of the crypto market to the Dotcom bubble of the early 2000s. According to the analyst, he stated that there was a similar cycle in which bubble projects would be wiped out before the market reversed, and he thought we entered a long-term uptrend:
“Mid-year overview: The common theme in cryptos is their acceptance of bear markets and building a better institutional and long-term financial system, especially similar to the bursting Dotcom bubble of 2000-2002. The first half was spent clearing the bubbles for all risky assets.”
While many crypto investors fear the potential of the Federal Reserve (Fed) to suppress digital assets with its high-interest monetary policy, Mike McGlone states that from now on, the Federal Reserve may have to switch to a low-interest policy again in case the stock market weakens.
Mike McGlone shared a chart showing the relationship of the S&P 500's past returns with the Relative Strength Index (RSI), expressing that the current outlook is similar to other returns, so he expects a new return. Considering the relationship of the S&P 500 with Bitcoin (BTC), Mike McGlone stated that he believes the uptrend for Bitcoin (BTC) is not far away.