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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
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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.
Bitcoin hit a one-year high of $31,400, a price last seen before the May 2022 Terra-LUNA crisis that collapsed and started a set of troubles for the crypto market. Notable analysts and experts predict an upcoming BTC price rally, Bloomberg Intelligence’s senior strategist Mike McGlone warns of many headwinds for Bitcoin price to hit $40,000.
Mike McGlone Predicts If Bitcoin Price To Hit $20,000 or $40,000
Bloomberg Intelligence’s senior strategist Mike McGlone took to Twitter to share the contents of a crypto outlook report. He argues that the launch of several Bitcoin ETFs including BlackRock spot Bitcoin ETF will not shield Bitcoin from facing its first US recession, potential equity bear market, and hawkish central banks.
The near-term outlook for Bitcoin is positive, but the key pivot point remained near $30,000 since 2021 amid the biggest money supply surge in history. He highlighted several obstacles that could potentially prevent BTC price from reaching $40,000.
In response to the recent Bitcoin ETF-inspired rally, McGlone said “Physical Bitcoin ETFs in the US are a matter of time, we believe. BlackRock’s application to start such a fund appears to have expedited this process, but a launch may not come in 2023, and Bloomberg Economics expects the US to tilt toward recession in coming months.”
Moreover, he believes the US Federal Reserve continuing interest rate hikes this year, weak US dollar liquidity, and Nasdaq 100 stock index reaching its peak are major obstacles to the upcoming Bitcoin rally.
“That the liquidity rug-pull is still happening, with most central banks continuing to tighten in June, could be a headwind, even as risk assets have bounced on hopes for a mild US recession and easing by the Fed.”
Also Read: Crypto Telegram Channels List 2023; Updated List
Cubic Analytics founder Caleb Franzen largely echoed McGlone’s analytics and highlighted the major zone of resistance for Bitcoin between $31,000 and $35,000.
This is the next key grapple zone for #Bitcoin based on price structure over the past two years. I have to lean bullish going into this red zone, but we must acknowledge the threat of potential resistance here.
Probably best not to chase here, so just sit back & enjoy the show. pic.twitter.com/TdxYvV3K9r
— Caleb Franzen (@CalebFranzen) June 23, 2023
CoinGape Media also reported that the Bitcoin CME gap between $34455 and $35180 is about to get filled. Moreover, over 145k BTC options with a notional value of $4.5 billion are about to expire on Friday, June 30, but analysts remain bullish on BTC price due to overall near-term technical advantage.
Read More: Will Bitcoin Price Fill CME Gap At $34K-$35K? $BTC Options Worth $4.5 B Set To Expire On June 30
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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.
With the recent Bitcoin price crash has come a number of speculations out of the market. Amateurs and experts alike have been giving their predictions on what they believe will happen going forward. While most have been bearish, the forecast from Mike McGlone is a rather bullish one. The Bloomberg analyst has sparked hope in the hearts of some with his forecast that $20,000 is the new $5,000 for bitcoin.
Good News For Bitcoin
McGlone took to Twitter to share his forecast for the leading cryptocurrency in the market. Panic had washed through investors when the digital asset had declined to the $20,000 level, tethering just slightly above it. While many believe that this was a signal for a further downtrend to come, some have said that it may have marked the bottom for the asset.
Related Reading | Bitcoin Funding Rates Remain Negative But Open Interest Tells Another Story
In his tweet, the Bloomberg analyst points to the early days of adoption in contrast with the diminishing supply of bitcoin may prevail. This argument is by no means a new one. The limited supply of BTC has long been one of its pulls for investors who believe that in the end, the scarcity of the cryptocurrency will be what drives its price higher. Mainly, McGlone suggests that BTC is approaching “too cold” levels, and as such, $20,000 may well be the new $5,000.
$20,000 #Bitcoin May be the New $5,000 –
The fundamental case of early days for global Bitcoin adoption vs. diminishing supply may prevail as the price approaches typically too-cold levels. It makes sense that one of the best-performing assets in history would decline in 1H… pic.twitter.com/f5MImdhzgD— Mike McGlone (@mikemcglone11) June 15, 2022
What this implies is that the bottom of the current downtrend may be in. Looking at the previous bear market, it is obvious that the bottom was clocked right when the price had fallen below $6,000 in the early days of 2022. If so, then there is no further decline for the digital asset from this point.
BTC resumes downtrend | Source: BTCUSD on TradingView.com
But Is The Bottom In?
Just as one historical movement can tell one story of the bitcoin bottom, so do the others. Now, it is known that the last bear market saw the price of bitcoin declined more than 80% from its all-time high. This trend has been closely followed through the bear markets. Despite the brutal crash in the last couple of days, bitcoin is still less than 70% down from its November all-time high. Given this, there may be more decline to come if it was to follow this trend.
Related Reading | Bitcoin Bounces Back Before Hitting 2017 Peak, Is The Bottom In?
However, there is another trend that lends credence to McGlone’s prediction. This is the fact that no matter the decline, the price of the digital asset has never fallen below the previous cycle peak. Given that bitcoin’s last peak was a little under $20,000, the bottom may indeed be in if this trend is held.
One thing to note though is that the present market has been deviating from previously established trends. It had begun with the multiple bull rallies of 2021 and now has carried into the bearish market of 2022. So, maybe there will be more breaking of historical trends to come.
Featured image from Cryptoknowmics, chart from TradingView.com
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Bitcoin’s price performance has been highly impressive in the last few weeks. The market has led Bloomberg’s Mike McGlone to call Bitcoin the most significant asset in the world.
Mike McGlone: Bitcoin is showing divergent strength
In an interview with Yahoo Finance where he shared his thoughts on the market, the commodities strategist stated that the last few weeks had made it extremely clear that very few assets would be able to rival Bitcoin.
He enthused that Bitcoin has had no downtime in trading, as well as operating. In contrast, some assets have proven time and again that their trading can be halted or affected by macro events. A recent example of this is nickel, he observed.
The significance of Bitcoin — it really struck me the last few weeks — is it is the most significant, fluent, widely- traded 24/7 asset ever on the planet, McGlone stated.
For McGlone, this realization is sweeping across the minds of many observers, and they are beginning to recognize Bitcoin’s reliability. With more conviction in Bitcoin has come more demand. This coupled with Bitcoin’s coded declining supply is what has been driving up the price of Bitcoin, McGlone opined.
The growing adoption of Bitcoin also plays in favor of a strong “macro big picture.” On the macro scale, Bitcoin is showing divergent strength as its price rally has seen it pull away from the stock market. McGlone surmised:
The significance is Bitcoin is up in the air with 5% or so and Nasdaq is still down about 7%. So it is showing divergent strength, which I expect to continue.
In a series of tweets, the Bloomberg chief commodity strategist continued to support the stance. He noted that Bitcoin is undoubtedly on its way to becoming global collateral except something disrupts market forces in play.
There’s little doubt #Bitcoin is the most fluid, 24/7 global trading vehicle in history and well on its way to becoming digital collateral in a world going that way. It’s a question of what might trip up the forces of increasing demand and adoption vs. diminishing supply pic.twitter.com/xBcZmmifba
— Mike McGlone (@mikemcglone11) March 30, 2022
Bitcoin surges as whales re-emerge
McGlone’s confidence in the market is coming on the back of a weekly Bitcoin price increase of around 4.18%. At its highest point, the price of Bitcoin reached $48,205. However, the exuberance has petered off a bit as Bitcoin is trading at about $45,800, down 3.04% in the last 24 hours at the time of writing.
The market has also seen remarkable whale activity. According to on-chain data shared by Santiment, 3,266 transactions exceeded a value of $100k in a 48-hours period.
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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.
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The ongoing crisis between Russia and Ukraine may just be bringing out the best in Bitcoin. According to Bloomber strategist Mike McGlone, the conflict may mark another step in Bitcoin’s journey to becoming the primary digital store of value globally.
Bitcoin is benefiting from a spike in the price of crude
Bloomberg’s chief commodity strategist, Mike McGlone, has long maintained that Bitcoin is on its way to becoming the “global digital collateral.” In a tweet today, he noted that surging oil prices caused by the Russia-Ukraine conflict is likely to speed up the process.
This is because rising energy prices are a strong reminder of the need for embracing technology. He supports the argument with a chart that shows that amidst the surge in the price of crude oil, Bitcoin and bonds have been rising as well.
The #RussiaUkraine conflict may mark another step in #Bitcoin‘s maturation toward becoming the global digital collateral. Spiking energy prices are a reminder of the benefits of embracing technology, and North America achieving the status of net fossil-fuel exporter. pic.twitter.com/UWA2BnMgmw
— Mike McGlone (@mikemcglone11) March 3, 2022
The price of crude has continued to surge since the conflict broke out as markets have feared supply shortages of Russian crude oil. The global benchmark, Brent Crude, has reached a high of $117.3 per barrel, up 4.32% on the day.
McGlone has previously noted that the Russian invasion of Ukraine may have marked “the inflection point in bitcoin’s transition toward global digital collateral in a world going that way.” While risk assets are subject to the contraction of the US stock market, Bitcoin was showing “divergent strength,” he said at the time.
The market strategist is also very bullish for Bitcoin, predicting that the market-leading crypto is set to reach a price of $100,000 as its next significant level.
Bitcoin adoption increasing globally
As McGlone expects, mainstream acceptance of Bitcoin has been rising in recent times. Both Russia and Ukraine have shown a marked increase in Bitcoin transactions as citizens look to get their money out of traditional financial mediums.
More regulators across the world, including several states in the US, as well as countries like Brazil, Mexico, and Tonga are also looking to recognize Bitcoin legally or even make it legal tender this year. Regardless, the price of Bitcoin has continued to show volatility in the short term. Bitcoin is currently trading at around $43,300, down -3.53% in the last 24 hours.
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