Volatility Back in the Crypto Market: Bears Take Advantage
The Bitcoin price and the overall crypto market have seen a resurgence of volatility, but it hasn’t been favorable for investors as values have plummeted in recent days. The sector had been moving sideways until a liquidation cascade pushed prices to critical support levels, and there may be worse to come if BTC fulfills a prophecy.
Key Points:
- Bitcoin is currently trading at $26,100, showing limited movement in the last 24 hours.
- Over the past week, BTC corrected to $26,000 after losing support at its previous highs.
- Bloomberg Intelligence’s Mike McGlone compared the Bitcoin price chart to the 1930s stock market chart, suggesting a potential drop when the US Federal Reserve changes its monetary policy.
- McGlone believes that if the Fed loses its monetary policy, Bitcoin could dip further as liquidity leaves financial markets.
- Investors are being advised to consider government-based financial instruments, like US Treasury notes yielding 5%, as a potential alternative to BTC.
Hot Take:
While the Bitcoin price has experienced volatility, the outlook seems bearish. McGlone’s comparison to the 1930s stock market raises concerns about a potential drop in value, especially if the US Federal Reserve alters its monetary policy. If this happens, Bitcoin could face further decline as liquidity leaves the market. Investors are being urged to explore government-based financial instruments as an alternative to BTC.
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