Bitcoin Could Experience a 60% Price Plunge, Says Bloomberg Strategist
According to Bloomberg Intelligence senior macro strategist Mike McGlone, Bitcoin (BTC) might be facing a significant price drop of up to 60%. McGlone’s analysis is based on the negative liquidity of Bitcoin and the rising global rates, even in the face of recession signals.
McGlone predicts that the United States will likely experience a recession by the end of 2023. He points to the $30,000 level as a crucial resistance point for Bitcoin and suggests that the cryptocurrency’s risks are skewed towards a price of $10,000.
The senior macro strategist also highlights the biggest risk for the entire crypto sector – pressure from a stock market drawdown related to a recession. He believes that weakness in the crypto market during the third quarter of this year may indicate a recovery blip or a recession leaning. McGlone notes that most central banks are still tightening despite contraction signs in the US and Europe, as well as the property crisis in China, which has deflationary implications.
McGlone draws parallels between Bitcoin’s behavior and historical events in the financial market. He mentions that Bitcoin swoons have often preceded Federal Reserve pivots, suggesting that the cryptocurrency could be a leading indicator for market liquidity.
Currently, Bitcoin’s price stands at $27,705, showing a 1.33% increase in the past 24 hours.
It should be noted that the opinions expressed by McGlone are not investment advice, and investors should conduct their own due diligence before making any high-risk investments in Bitcoin or other cryptocurrencies.
Disclaimer: The opinions expressed in this article are not intended as investment advice. Cryptocurrency investments are inherently risky, and individuals should perform their own research and consult with a financial advisor before investing.