Bitcoin Price Could Decline Further
According to Bloomberg analyst Mike McGlone, there is a possibility that the price of Bitcoin could decline further. In a tweet, he highlighted the $10,000 mark as a potential target, which could be reached by the end of the year. This is due to the ongoing battle with the $30,000 resistance level.
Many have considered this resistance level as crucial for a sustained breakout in Bitcoin’s price. However, based on McGlone’s analysis, it seems unlikely that this breakout will happen.
McGlone also mentioned that the recent rise in Bitcoin’s price may be a “short-covering rally.” He pointed out that liquidity in the Bitcoin ecosystem remains negative, indicating more selling pressure than buying pressure.
Rising interest rates are another factor that could affect Bitcoin’s price. In a “zero interest-rate world,” Bitcoin gained prominence for its financial freedom. But now, as global rates continue to rise, Bitcoin and other cryptocurrencies might face challenges.
Inflation is on the rise globally, leading authorities to raise interest rates. This could restrict spending and limit liquidity in the crypto market.
Bloomberg Intelligence has drawn a correlation between FED fund futures and Bitcoin’s price. According to projections, Bitcoin needs to decline further before there can be a liquidity reversal in those funds.
The Fate Of The Broader Crypto Market
McGlone also suggested that cryptocurrencies might be leaning into a recession. He pointed out the relationship between the crypto market and stock market and stated that if the stock market were to experience a typical drawdown due to a recession, it could impact cryptocurrencies as well.
This projection aligns with the downward trajectory of the Bloomberg Galaxy Crypto Index (BGCI) and Russell 2000 Index (RTY) from their all-time highs in 2022. Both markets have remained stagnant, waiting for a catalyst that could spark a price surge.
Analyst Nicholas Merten has also highlighted the correlation between the stock market and the crypto market. If big tech companies’ stocks don’t start picking up, it could be a problem for the crypto market.
Hot Take: Bitcoin Price Faces Challenges Ahead
Bitcoin’s price could face further declines in the near future, according to Bloomberg analyst Mike McGlone. The ongoing battle with the $30,000 resistance level and negative liquidity in the Bitcoin ecosystem are contributing factors. Rising interest rates and global inflation also pose challenges for Bitcoin and other cryptocurrencies.
Additionally, the fate of the broader crypto market may be linked to the stock market. If a recession leads to a drawdown in the stock market, cryptocurrencies could be affected as well. The Bloomberg Galaxy Crypto Index and Russell 2000 Index have already experienced downward trajectories.
Overall, there are uncertainties surrounding Bitcoin’s price and the crypto market as a whole. It remains to be seen how these factors will play out and whether Bitcoin can overcome its current challenges.
By
By
By
