- Mike McGlone Predicts Big Drop for Bitcoin
- It will be connected with the general world crisis
Bloomberg senior macro strategist Mike McGlone has hinted that the top cryptocurrency could fall to $20,000 despite recent gains. Even the institutional appetite on the part of BlackRock and other giants will not help this.
McGlone shared his opinion in a monthly report. He began by reviewing the potential challenges that cryptocurrencies face. Factors such as a possible bear market and central bank crackdown could threaten BTC’s bullish trajectory.
The analyst stressed that even the launch of a Bitcoin ETF in the US will not protect the digital currency from these threats. After all, a falling economy reduces liquidity for all assets. Given the possibility of a recession in the coming months, the situation with BTC may become more complicated.
At the end, McGlone concluded that Bitcoin is likely to trade around the $20,000 support level, rather than the $40,000 resistance level.
The Federal Reserve recently suspended a series of interest rate hikes, giving investors some breathing room. As a result, the markets showed significant growth, and Bitcoin was able to break through the $30,000 mark.
However, Fed Chairman Jeremy Powell signaled that the authorities would resume raising rates. At the same time, the official is confident that bitcoin and other strong cryptocurrencies will survive in such conditions.