Bloomberg Intelligence chief commodity strategist Mike McGlone has said the recent Chinese government crackdown on Bitcoin shows the revolutionary value of the asset despite the ongoing volatility.
Through his Twitter account, McGlone said that Bitcoin shows signs of maturity amid the ongoing difficulties in attempting to stabilize above $30,000.
He noted that the current price correction for Bitcoin is short-term and building the base for potential long-term gains. McGlone stressed that the current Bitcoin price movement is not a signal for dark days. Notably, McGlone has predicted that the asset will trade in upwards of $100,000 in the coming years. According to McGlone:
Picks for you
“Probing $30,000 is more a matter of supportive maturation within a longer-term pricing uptrend than a signal that Bitcoin is destined for dark days. China’s crackdown confirm Bitcoin’s revolutionary value.”
In recent weeks, Bitcoin has been holding a support level of above $30,000. The asset recently plunged below the mark but has managed to rebound at $31,500 by press time.
However, McGlone believes that probing $30,000 is rather necessary for the “supportive maturation” of Bitcoin that will later take it to a long-term uptrend.
Bitcoin plunges amid increased crackdown
Bitcoin has since plunged by almost 50% from the April all-time high of $64,800. The price volatility is occasioned by an increased crackdown by the Chinese authority on asset mining.
Authorities have pushed out cryptocurrency miners, forcing some to move overseas to other Asian countries like Kazakhstan. Furthermore, the United States is also emerging as a possible destination for miners from China.
The move to shift mining operations will likely decentralize operations that were highly concentrated in China. Following the crackdown, data indicates that mining Bitcoin has become more accessible and more profitable.
Notably, over half of the hash rate of the Bitcoin network has potentially become beneficial to other crypto miners. In general, the crackdown in China has resulted in a series of regulatory scrutiny on cryptocurrencies globally. However, the Asian market remains upbeat despite the crackdown.
[coinbase]
