Bitcoin’s Momentum and the Stock Market
Bitcoin (BTC) has been experiencing an upward trend both month-over-month (MoM) and year-to-date (YTD). However, while some investors see this as positive momentum for the leading cryptocurrency, others believe it could be a short-lived run that will ultimately drag down the stock market.
This is the perspective of Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence. In a recent tweet, McGlone stated that Bitcoin may lead a “great reset” by going down after its rise. He argues that the belief that “it will go up because it rose” is not holding true for crypto assets and base metals.
McGlone has consistently maintained a bearish view on Bitcoin, comparing it to other commodities. He believes that cryptocurrency can serve as a leading indicator for an impending economic recession.
In another tweet, McGlone suggests that Bitcoin’s apparent rollover could signal a pivot by the Federal Reserve and trigger a bond market recovery.
Bitcoin Price Analysis
Currently, Bitcoin is trading at $26,814 with a 1.3% loss in the last 24 hours. Despite recently released U.S. CPI data, there has been no major volatility in the day.
The year-to-date price chart still shows an upward trend with over 62% gains since the beginning of 2023 when Bitcoin was priced at $16,540. The month-over-month uptrend can also be observed since September 12 when Bitcoin traded below $25,000.
Hot Take: Is Bitcoin’s Momentum Sustainable?
While some investors remain optimistic about Bitcoin’s upward trajectory, others like Mike McGlone have doubts about its sustainability. McGlone argues that the technical mantra of “it will go up because it rose” is not holding true for Bitcoin and other assets. He suggests that Bitcoin’s rollover could be a signal for a Federal Reserve pivot and a bond market recovery. As the debate continues, it remains to be seen whether Bitcoin’s momentum will continue or if it will face a significant correction.
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