Bearish Dogecoin Warning Issued by Bloomberg’s Mike McGlone U.Today
Source link ]]>
Mike McGlone, Senior commodity strategist at Bloomberg Intelligence, has made a rather pessimistic prediction for Bitcoin, emphasizing that the cryptocurrency’s potential rise to $150,00 was a long shot. The strategist has revealed factors that could make Bitcoin’s projected surge to $150,000 difficult, highlighting both macroeconomic trends and Bitcoin’s performance in 2024.
Bitcoin Surge To $150,000 Unlikely
In a recent interview with Scott Melker, the host of “The Wolf Of All Streets,” podcast, McGlone discussed Bitcoin’s price fundamentals and its possible rise to $150,000 in the 2024 bull cycle.
Comparing Bitcoin with the stock market index, the S&P 500, the Bloomberg strategist disclosed that the cryptocurrency was currently showing “divergent weakness,” highlighting that Bitcoin’s performance against the S&P 500 in 2021 was greater compared to 2024.
He also revealed that Bitcoin was displaying a similar weak performance to Gold, emphasizing current market conditions and the risk of short-term deflation in the financial market.
The combination of these factors pushes McGlone to believe that Bitcoin’s short-term projected rise to $150,000 was unlikely.
While the Bloomberg strategist made his foreboding prediction despite Bitcoin’s overperformance at the beginning of the year, McGlone still remains optimistic about the cryptocurrency’s price and fundamental value in the long term.
Co-founder and CEO of CoinRoutes, Dave Weisberger, who was also in the podcast with McGlone, made a more optimistic prediction for Bitcoin. Basing his analysis on historical trends and patterns as far back as 2015, Weisberger forecasted that Bitcoin could rise to $200,000 this cycle.
His forecast is also acknowledged by reformed hedge fund manager, James Lavish, who revealed in the podcast that Spot Bitcoin ETFs could become a potential driver for Bitcoin’s continuous growth. This is attributed to the massive impact Bitcoin ETFs had on the cryptocurrency’s price following its launch on January 11, 2024.
After Spot Bitcoin ETFs were successfully released into the market, the price of Bitcoin skyrocketed to new all-time highs above $73,000. At the time of writing, the cryptocurrency is trading at $63,778, marking a 0.89% increase over the past seven days, according to CoinMarketCap.
BTC Crash Presents Perfect Opportunity
According to Lavish, if Bitcoin crashes down to the $30,000 to $40,000 range, it would present a “tremendous opportunity” for investors to acquire substantial value in a long-term asset that will essentially hold its value and continue to appreciate in the future.
The reformed hedge fund manager revealed that Bitcoin’s short-term volatility and market unpredictability could produce long-term capture of value. This suggests that by strategically navigating through the price fluctuations of Bitcoin, investors could potentially capitalize on its volatility to accumulate wealth over time, which in turn could favorably impact the price of the cryptocurrency.
BTC bears and bulls continue tug of war | Source: BTCUSD on Tradingview.com
Featured image from ETF Stream, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Bitcoin volatility has declined immensely in the last few years, as the BTC price action shows. Bloomberg senior macro strategist Mike McGlone says Bitcoin volatility has more room to decline, making the top crypto’s relative risk to fall continuously. However, it is still higher when compared to the volatility of conventional store of value — gold.
Bitcoin to Gold Volatility Convergence
Mike McGlone, senior macro strategist at Bloomberg Intelligence, on August 21 shared data on Bitcoin-to-gold volatility convergence. According to McGlone, Bitcoin’s volatility continues to drop against that of gold and has more room to decline than most traditional assets. Bitcoin’s volatility drop is also causing crypto’s relative risk to decline, making it less risky.
“At about 3x that of gold, my graphic shows Bitcoin’s 90-day volatility still relatively elevated vs. the conventional store of value, but well off the peak from 2018 of around 12x.”
According to the report, the days of big moves in BTC price are over. Bitcoin may not see a sudden price jump or swift move to an all-time high due to a significant decline in volatility.
Bitcoin witnessing growing adoption in the traditional finance industry, especially after BlackRock spot Bitcoin ETF filing. Futures, cash-and-carry arbitrage, and exchange-traded funds are characteristic of the benchmark crypto’s maturation process.
Also Read: XRP Leads the Pack in Altcoin Space Recovery, Whales Buy the Dips
BTC Price to Witness Rebound?
The macro factors along with a weak technical chart structure are putting pressure on Bitcoin price. The Federal Reserve’s plan to continue rate hikes and the US dollar index (DXY) moved to 103.50 caused BTC price to tumble recently.
According to popular crypto analyst Ali Martinez, each time BTC had broken below the 200-day SMA over the last 10 years, it touched the Realized Price. Currently, the Realized Price is around $20,350.
BTC price jumped 0.5% in the past 24 hours, with the price currently trading at $26,090. The 24-hour low and high are $26004 and $26260, respectively. However, trading volume has decreased by 10% in the last 24 hours.
Also Read: BTC Price Falls Under This Crucial Support, Next Bitcoin Target $20,350
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The Bitcoin (BTC) market may not see an end to bearish trends soon. Another rough week is incoming for Bitcoin, according to a Bloomberg analyst. This is because inflation is not likely to recede unless risk assets drop, which has so far not happened.
Bitcoin could still have a remarkable run this year
Bloomberg’s chief commodities strategist, Mike McGlone, stated this in a tweet where he shared his thoughts on the relationship between the Bitcoin market, risk assets, and inflation.
While the short-term outlook for Bitcoin holds a promise of market volatility, the benchmark cryptocurrency is on course to set a new trend. Referring to the Fed’s financial policy tightening, McGlone noted that the majority of assets in the market respond to the “ebbing tide” in 2022. However, Bitcoin may mark a milestone this year by breaking out of the grasp of inflation according to the sleuth.
“Most assets are subject to the ebbing tide in 2022, on the inevitable reversion of the greatest inflation measures in four decades, but this year may mark another milestone for Bitcoin,” McGlone said.
#Bitcoin indicating a rough week ahead – Inflation Unlikely to Drop Unless Risk Assets Do:
Most assets are subject to the ebbing tide in 2022, on the inevitable reversion of the greatest inflation measures in four decades, but this year may mark another milestone for Bitcoin. pic.twitter.com/drnXyYea4F— Mike McGlone (@mikemcglone11) February 20, 2022
McGlone has previously noted that Bitcoin is showing “divergent strength” when compared to equities. A continuing theme from Bloomberg’s Crypto Market Outlook for February, the strategist is also bullish on Ethereum and stablecoins – which he has named “crypto dollars.” In the report, Bloomberg’s team of analysts predicted that Bitcoin’s next major price level is $100,000.
Bitcoin (BTC) fails to hold up above $40,000
Bitcoin (BTC) is trading at around $38,700, up 1.01% in the last 24 hours at the time of writing. Prices in the crypto market have been showing wild volatility on the back of expectations of a rate hike by the Fed.
Analysts are predicting that there may be as many as six rate hikes this year, as the Fed tries to reduce the circulating supply of money significantly. The move is to reverse inflation that was caused by stimulus schemes during the COVID pandemic.
Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
