Bloomberg Analyst Predicts a 60% Price Plunge for Bitcoin
Bloomberg Intelligence senior macro strategist Mike McGlone suggests that Bitcoin (BTC) may experience a significant price drop of up to 60%. According to McGlone, the key indicator for BTC is the negative liquidity and the rising global rates, despite recession signals.
McGlone maintains his belief that the US will face a recession by the end of 2023. He points out that Bitcoin’s crucial resistance level is $30,000 and states that there is a higher risk of the top cryptocurrency dropping to $10,000.
Furthermore, McGlone emphasizes that the most significant risk for the entire crypto sector would be pressure resulting from a stock-market drawdown related to a recession.
“Crypto weakness in Q3 may be a recovery blip or a sign of an impending recession. Our bias leans towards the latter since almost all risk assets gained in 2023 but rolled over into the quarter. Despite signs of contraction in the US and Europe, most central banks are still tightening, and China is experiencing a property crisis with deflationary implications.”
“The relative underperformance of the Bloomberg Galaxy Crypto Index (BGCI) could reflect changes for an asset class accustomed to zero interest rates. In 1987, spiking US Treasury yields preceded a crash, and crude oil peaked in July 2008. We see similarities. Bitcoin swoons have preceded Federal Reserve pivots, which may highlight the crypto’s leading indicator attributes and what is required to revive liquidity.”
At the time of writing, BTC is valued at $27,705, representing a 1.33% increase in the past 24 hours.
Hot Take: Bitcoin’s Volatility Remains a Concern
Bloomberg analyst Mike McGlone’s prediction of a potential 60% price plunge for Bitcoin raises concerns among investors. With negative liquidity and rising global rates, BTC faces risks that could push it down to $10,000. Additionally, the impact of a stock-market drawdown related to a recession poses a significant threat to the entire crypto sector.
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