Here's Why This Crypto Analyst Compares $20,000 Bitcoin Of 2022 To $5,000 BTC Of The Past

Cryptocurrency Bitcoin (CRYPTO: BTC) plunged to $17,708.62 on Saturday, and began retracing its way back to $20,000 on Sunday. BTC rose by 4.20% in 24 hours and was trading at $19,807 at the time of publication. 

Even as Bitcoin drops to levels not seen since December 2020, some cryptocurrency analysts see a potential bottom forming. 

Recently, Bloomberg’s commodities analyst Mike McGlone said that BTC's present $20,000 price range may act as a zone of support, like $5,000 did in the previous crypto winter.

$20,000 #Bitcoin May be the New $5,000 -
The fundamental case of early days for global Bitcoin adoption vs. diminishing supply may prevail as the price approaches typically too-cold levels. It makes sense that one of the best-performing assets in history would decline in 1H... pic.twitter.com/f5MImdhzgD

— Mike McGlone (@mikemcglone11) June 15, 2022

Also Read: Bitcoin Breaks Below $20,000: Analyst Says 'Panic Could Be Massive,' Predicts Lower Price Target

McGlone also said, “Bond future collapse makes Bitcoin look mature. The need to go back to near the start of US Treasury bond future trading in 1977 for a similar drawdown as in 2022 indicates the level of extremity.”

McGlone pointed out that Bitcoin’s performance is typical, adding that BTC is being influenced by surging volatility in other traditional assets.

#Bitcoin Adulting vs. Spiking #Stock, #Bond, #Commodity Volatility - Bitcoin appears to be in the midst of a typical drawdown, notably vs. historically extreme spikes in commodity prices and bond yields, rapidly reverting equities and the most aggressive Fed in about 30 years. pic.twitter.com/0nxjrEIWRM

— Mike McGlone (@mikemcglone11) June 17, 2022

Speaking about some of the best assets to hold now, he said, “My outlook is I think some of the best assets to own will be gold, US long bonds, and Bitcoin. I think we’re going back to deflation, and the best way to get deflation is to get a big spike up in prices and then flush them. That’s what we’re doing. We’re in the early days of flushing.