Bloomberg Intelligence commodity strategist Mike McGlone is weighing in on Bitcoin’s (BTC) outlook and whether or not the top crypto is more likely to revisit $60,000 than to drop to support at $20,000.

Eric Balchunas, Bloomberg’s exchange-traded fund (ETF) senior analyst, shares a section of McGlone’s report in which the commodity strategist explains how BTC’s current consolidation above $30,000 is reminiscent of its price pattern in 2019 when the leading cryptocurrency launched a 250% rally in a span of three months.

“Bitcoin is more likely to revert toward $60,000 resistance vs. $20,000 support, if its history of recovering from similar too-cold conditions are any guide. Our graphic depicts the benchmark crypto akin to the 2018-2019 consolidation period of around $4,000, just before launching to the 2019 peak at about $14,000. The more tactical-trading-oriented bears seem to proliferate when Bitcoin sustains at about 30% threshold below its 20-week moving average, allowing the buy-and-hold types time accumulate.”

McGlone says that Bitcoin’s consolidation above $30,000 suggests that BTC is setting the stage for a sustained uptrend as opposed to triggering another round of sell-off.

“Shorter-Term Bitcoin Pain Typical for Potential Longer-Term Gain:

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 [confirms] Bitcoin’s revolutionary value.”

Looking at China’s harsh stance on Bitcoin trading and mining, McGlone says its crackdown on BTC and other crypto assets could be a signal that the country has hit a ceiling in its economic rise.

“China’s rejection of open-source software crypto-assets may mark a plateau in the country’s economic ascent, we believe, while extolling the value of the U.S. dollar and Bitcoin.”

McGlone suggests that when it comes to the digitalization of money, the US Dollar is ahead of the curve, as he highlights that top stablecoins such as Tether (USDT), Binance USD (BUSD) and USD Coin (USDC) have reserves denominated in dollars.

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A cup and handle is a very bullish formation that suggests bears have run out of ammo, with bulls charging. Bears then give it another try to form the handle, but upon being defeated by bulls, the asset takes off.

The above looks kind of like such formation, but of course it depends on price action whether it will fully play out.

That’s just one driver however. A bigger one may well be China where the party has made the stock price of even a food delivery app, Meituan, plunge 14% following yet some more regulations requiring respect for the rights of delivery staff.

The Hang Seng China Enterprises Index, which includes Hong Kong-listed mainland stocks, has entered a bear market after falling 24% from a February peak.

Some may still be holding however, but plenty will be looking for new assets with bitcoin an apt one due to it being outside of the banking system, so it can’t be seized or given a haircut if defaults lead to banking troubles.

The news that SpaceX bought bitcoin and that its CEO, Elon Musk, doesn’t ‘dump,’ may have also contributed towards changing sentiment.

That was followed by Amazon suggesting they’re looking to enter the crypto space, while eth is now just over a week away from upgrading to EIP1559 which will reduce its total supply.

Bitcoin has been leading however with eth’s ratio not quite keeping up as it charges towards that $40,000 line which it hasn’t comfortably overtaken since May.

There is also a bit of FUD, but a very mixed one with Bloomberg reporting DoJ is opening an investigation on Tether for ‘banking fraud.’

“Specifically, federal prosecutors are scrutinizing whether Tether concealed from banks that transactions were linked to crypto, said three people with direct knowledge of the matter who asked not to be named because the probe is confidential,” they say.

Crypto is not illegal, so it’s not clear why it is any of the bank’s business what the account is used for as long as its usage is legal, which it is because Coinbase does the same with USDc.

Therefore it’s not clear whether the investigation will go anywhere as proving fraud over legal activity would be a high barrier.

The good news is that DoJ investigating potential fraud suggests they’ve moved on from investigating whether Tether manipulated bitcoin’s price.

“Reserves exceed liabilities,” said Paolo Ardoino, Tether’s CTO, with Bitfinex and Tether now settling a claim by the New York Attorney General for $18.5 million regarding the matter.

All this so indicating Fed is probably looking for a way to have a say over tokenized dollars as they near $100 billion in market cap.

Something that may well increase the adoption of such tokens if they’re brought into the limelight, and thus may smooth the on and off ramps for cryptos in general.

Otherwise in the worst case scenario, everyone would be running from Tether to bitcoin which would probably send the crypto into a bull run as has been the case previously when USDt briefly went off peg.

All of it suggesting the FUD is kind of fading and weakening with another potential contributor to bitcoin’s rise being lockdowns especially in Australia.

It is winter there so nowadays that means locked in houses with corrupt bureaucrats making their way through the Greek alphabet while proposing boosters may be needed as big farma fattens its pockets.

That’s generally with printed money, and so some Australians may well be going bitcoin with a clash of sorts arising especially in Europe between the elected and the populace regarding never ending restrictions or govern me harder daddy and freedum.

Generally however the economy is opening up with the professional class moving on since May 2020, while in ‘normie’ town the BBC especially continues on and on, but the ‘normies’ also seem to be moving on now.

As is bitcoin, with the big theme coming up being potentially the ramifications of those lockdowns, especially in China where they may have overextended.

Lending has been around in some form for thousands of years — dating back to ancient civilizations where farmers would borrow seeds and use crops as repayment.

The arrival of fiat currencies transformed the way economies were run back then. Indeed, you could argue that we’re seeing such a seismic shift now as cryptocurrencies become a larger and more influential part of the world’s financial ecosystem.

When done right, crypto lending has the potential to level the playing field — giving consumers a type of flexibility that they may otherwise have been unaccustomed to. For several years now, the rates offered by banks have been tepid to say the least. In some countries, even the most generous savings accounts will only pay less than 1% interest — even if funds are locked up for several years.

Given how inflation has been rising sharply recently, in part because of the money printing performed in response to the coronavirus pandemic, signing up for one of these accounts means a saver’s money would actually command less spending power down the line.

Crypto lending offers three powerful advantages compared with the status quo. First, it is possible to find more competitive deals that ensure capital actually grows — with interest sometimes paid on a weekly or a monthly basis. Second, many platforms offer a much-needed degree of flexibility to lenders, meaning that they won’t be forced to lock up their money for long periods of time and can withdraw their funds at will. And third, it can act as a powerful incentive when markets are behaving rather erratically.

That’s before we’ve even discussed the fact that crypto as collateral can be far more practical from a lender’s point of view than real estate — an asset that is rather illiquid and can be rather time consuming to sell.

It isn’t just lenders who benefit

Of course, all of this sounds like a good deal for lenders — the people who have capital to spare. But it can also be beneficial for borrowers, too. In the current financial ecosystem, where a single blemish on an otherwise impeccable credit history can deny a responsible consumer access to the best interest rates, crypto platforms can offer an invaluable lifeline.

Banks often have an opaque list of requirements when it comes to finding the people they are willing to extend credit to. And, in a world where ever-increasing numbers of consumers are self-employed, otherwise creditworthy applicants can end up being excluded from the market simply because they don’t have a traditional nine-to-five job — irrespective of whether they actually earn more money in their current arrangement.

The crypto world can help to foster inclusivity here, but there are challenges. A number of lenders in this space are offshore and unregulated — something that can make them less appealing to everyday consumers. This also restricts the number of partnerships that crypto platforms can enter into with fintech firms.

A new approach?

One platform that is aiming to shake up the world of lending is Baanx, a crypto-as-a-service fintech intending to bridge the worlds of crypto and fiat. The company allows brands to offer interest-free forms of secured lending to their customers and communities, alongside high savings rates for those who stake their digital assets. This is all achieved via APIs that can be rapidly integrated into any DeFi, exchange, or wallet’s app or website.

This form of interest free and low cost secured lending is provided to those who stake BXX, the utility coin that’s associated with Baanx. Loans can subsequently be moved into crypto wallets or physical and virtual cards. For those who use Bitcoin and Ether as collateral, loan-to-value ratios of up to 50% are available, and approval can be achieved in one click.

Baanx is on the list of temporarily registered cryptoasset businesses with the FCA and also utilizes a lending license. The project’s whitepaper states that it will “lend against any digital asset including cryptos, stocks, bonds and the emerging NFT asset class.”

The volumes of money that can be offered through lending will depend on the volumes of tokens that are staked within its system.

Figures provided by Baanx suggest that the platform now has sold more than 600,000 white-label cards and accounts around the world — almost exclusively through branded corporate clients, including Tezos Crypto Life app, DeFi protocols, exchanges, and wallet providers. It is also planning to launch with a major wallet provider in the U.S. in the fourth quarter of 2021.