Bitcoin Faces 60% Drop Potential: Bloomberg Analyst Mike McGlone Cites Key Risk

Bloomberg's Mike McGlone Predicts Potential 60% Bitcoin Price Decline

Mike McGlone, a seasoned analyst, emphasizes a worrisome trend for Bitcoin (BTC). He identifies negative liquidity as a crucial BTC indicator amidst rising global rates, even in the face of looming recession hints. With an unwavering stance, McGlone forecasts a US recession by 2023's close. Additionally, he underscores a pivotal resistance for Bitcoin at $30,000. However, he doesn't stop there; he raises eyebrows with a stern warning, hinting that the premier cryptocurrency might gravitate towards a concerning $10,000 mark.

Mike McGlone, Bloomberg's reputable analyst, has sounded alarms for the crypto world, pointing to significant threats stemming from a potential stock-market downturn during a recession. Highlighting the crypto market's frailty in the third quarter of 2023, McGlone opines that this could be a harbinger of a more significant economic slump. He contrasts this with the otherwise robust performance of risk assets in 2023, which seemingly reversed course during the quarter.

Furthermore, McGlone observes tightening measures by central banks, even as economic contractions surface in the US and Europe. China's property crisis, with its potential deflationary repercussions, adds to the global economic uncertainty.

Drawing attention to the Bloomberg Galaxy Crypto Index's (BGCI) recent underwhelming performance, McGlone postulates that this could be the crypto world's adaptation to a changing financial landscape – particularly one moving away from zero interest rates. He references historical events, like the US Treasury yield spikes of 1987 and crude's 2008 peak, as potential parallels to today's scenario.

Emphasizing the anticipatory nature of Bitcoin, McGlone points out its reactions preceding major Federal Reserve decisions. This behavior, in his opinion, might exemplify Bitcoin's value as an economic bellwether and hint at actions needed to rejuvenate liquidity.

Currently, Bitcoin's market value stands at $27,705, witnessing a 1.33% rise within the last day.

Oct 05, 2023