One trader predicts that Bitcoin’s (BTC) “bear market” will continue, despite hopes that a U.S. currency reversal may shortly enhance BTC price action.
Michael van de Poppe, suggested in his last YouTube post on May 2 that the USD’s current rally will not endure long.
Bitcoin remains under pressure as stocks and cryptocurrencies alike confront the prospect of a dramatic policy shift by the US Federal Reserve.
The Fed is expected to announce this week that the “free money” environment that has existed since the March 2020 COVID crisis will come to an end — and risk assets will be the first to suffer.
The US dollar index (DXY) reached a new high after the COVID meltdown, but then fell as Bitcoin drove crypto markets to new highs.That negative link has subsequently reversed, and crypto is now on the receiving end of misery, with DXY hitting twenty-year highs.
However, compared to prior DXY bull runs, Bitcoin has lost significantly less in USD terms, according to Van de Poppe.
BTC/USD, for example, lost nearly 80% in 2014, but the decline from its all-time highs in November 2022 has only reached a maximum of 55% so far.
Right now, we’re seeing implied strength, and I believe the dollar is nearing the end of that rise,” he said, adding that a reversal was “close.”
Despite this, Van de Poppe believes the “Bitcoin bear market” will continue, and that if it does, the negative objectives will now stretch beyond $30,000 to $25,000.
Long Term Analysis Remain Bullish
Popular commentators maintained to believe in Bitcoin’s long-term strength following a period of impending agony.
On May 2, Mike McGlone, chief commodities strategist at Bloomberg Intelligence, told Scott Melker of the Wall of All Streets Podcast that a reset of crypto and traditional markets was “already happening.”
Cryptos were just a terrific leading indication, and now we’re taking the tide out, and it’s a question of how far,” he explained.
The Fed is raising rates by 50 basis points this week for the first time in years; he says he could verify, but I haven’t seen that in a long time.Despite this, McGlone projected that Bitcoin would profit in the long run from the oncoming turmoil.
He believes it will be part of the trigger that will flush out the rest of the market’s excesses, particularly in equities, and then Bitcoin will come out on top — and it is already occurring, he added.