Economic Downturn Could Impact Bitcoin, Bloomberg Analyst Mike McGlone Predicts

Bloomberg Intelligence Senior Macro Strategist, Mike McGlone, Forecasts Near-Term Bearish Outlook for Bitcoin (BTC).

Mike McGlone of Bloomberg Intelligence Highlights Bitcoin's Bearish Signals Amid Rising Risk Assets"

During a recent Kitco News interview, McGlone observed that even as other risk assets are seeing an uptrend, Bitcoin is indicating bearish tendencies. He mentioned, "In bear markets, when money is stripped away from everyone, Bitcoin will suffer. It's crucial for Bitcoin to display divergent strength, aligning itself with treasury bonds and gold in a deflationary scenario. Unfortunately, it hasn’t demonstrated this yet. After peaking at nearly $31,000 at Q1's end, influenced by optimism and ETFs, it retreated to the $25,000-$26,000 range. Interestingly, its performance is now diverging from the upward-moving stock market.”

Shifting to the topic of Bitcoin's future amidst an “economic reset,” McGlone expressed that Bitcoin's current downtrend may continue. However, he remains optimistic about the cryptocurrency's long-term potential, predicting it might reach a value of $100,000. He shared, "With an anticipated global economic reset leading to a normal deflationary recession, mirroring 2008 events but possibly worse due to ongoing liquidity removal, Bitcoin could serve as a pivotal leading indicator. Lately, Bitcoin's price trajectory seems to be leading the downward trend, hovering around $31,000 before declining further."

As of this article, Bitcoin is priced at $26,079.

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Aug 26, 2023

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