Bitcoin (BTC) Price Will Mostly See Positive Factors Ahead of Halving, Analyst Scott Melker Says

Analyst Scott Melker and Mike McGlone joined Gareth Soloway for an interview and discussed the recent inflation data and also shed light on Bitcoin's

Analyst Scott Melker and Mike McGlone shared their thoughts on the recent inflation data and its impact on Bitcoin's price action in an interview with Gareth Soloway.

According to Melker, the recent Consumer Price Index (CPI) and inflation data showed a minor decrease of 0.1%, marking the first decline in four years. While small, this decrease fueled expectations for a Federal Reserve (FED) rate cut, leading to a significant selloff in tech stocks. However, Melker believes this is more of a market rotation than money leaving the market.

Regarding Bitcoin, Melker stated that it has only seen a 27% correction from its peak, which is typical in previous bull markets where corrections ranged from 35% to 45%. He acknowledged the possibility of further declines but said he is not overly concerned.

Melker also highlighted the importance of Bitcoin getting back above the 200-day moving average to boost confidence. Despite potential short-term volatility, he sees mostly positive factors for crypto, such as the upcoming election, political support, and the anticipation of the next Bitcoin halving. He also noted that Bitcoin is not strictly following equity market trends and pointed out the importance of patience during slow market periods.

Senior Macro Strategist at Bloomberg Intelligence, Mike McGlone, stated that the market is beginning to realize that the FED can ease monetary policy, with a 100% chance of a rate cut at the September meeting. He believes the rising unemployment rate could justify this decision, although there is still more data to come.

Today's numbers are seen as noise in the bigger macroeconomic picture, where the market swung too far towards recession last year and too far away from it this year, now evening out in the middle.

He added that Bitcoin, considered a leading indicator, had a good run earlier in the year but is showing weakness, suggesting a need for a pullback in equities to let things settle. In commodities, particularly grains, he sees breakdowns indicating the start of a broader reversion in equities, Bitcoin, and bond yields, with yields following China's trend.

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