The price of bitcoin recently soared following a series of events caused by an ETF request from BlackRock. Some analysts believe this is the start of a bull run for the flagship crypto. However, one of them is reserved about this prospect. Here’s why.
Bitcoin could drop to $20,000
Ten days ago, asset manager BlackRock pushed the price of bitcoin higher. A direct consequence of the Bitcoin ETF application filed with the SEC. Procedure itself supported by similar bodies of other major financial groups.
Many analysts had considered these trends as a set of circumstances leading to the sustained surge in the price of bitcoin. A projection that Mike McGlonea senior analyst at Bloomberg, disagrees.
Regarding the events around BlackRock’s Bitcoin ETF request, McGlone has a clear opinion. He does not believe they will cause the uptrend in bitcoin price attributed to them.
In fact, the expert sees the current momentum of the queen of crypto coming to a halt significantly. According to him, the situation will be such that BTC will experience a resounding crash, bringing its valuation back to around $20,000.
This bearish projection is not so much related to BlackRock’s Bitcoin ETF demand per se. Regarding the granting of a bitcoin ETF, McGlone thinks it is only“a matter of time”.
If the analyst nevertheless envisages a new collapse of the flagship crypto, it is due to the current ups and downs of the financial market. The price of BTC could be affected by a long season of falling stock prices, he said.
The situation will go, he believes, with a potential tightening of the vigilance of the United States Federal Reserve (Fed) regarding the crypto market. A situation which, reinforced by fears of a recession in the American economy, could constitute a real challenge for bitcoin in particular.
Mike McGlone isn’t the only analyst with reservations about BTC’s price upside potential. In the wake of the announcement of BlackRock’s Bitcoin ETF request, Peter Schiff had expressed similar reservations.
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