Bitcoin (BTC): here is an analyst's warning!

Many people are currently betting on bitcoin to deal with the financial crisis that has been raging for several months now. Mike McGlone, Bloomberg’s macrostrategist analyst, however, wanted to warn them: the price of bitcoin (BTC) could fall exponentially in the coming months.

“Bitcoin (BTC) could experience a memorable fall”, says Mike McGlone

A bearish sentiment on bitcoin (BTC)

Certainly, bitcoin (BTC) has seen a spectacular rise 4 times since the increase in the money supply by the Federal Reserve (FED). In April, for example, it explodes to $30,000. According to a Bloomberg analysis, however, the value of this cryptocurrency could drop exponentially.

According to Mike McGlone, the price of bitcoin (BTC) is likely to fall to $7,000 due to lack of liquidity and rising rates. Based on the current bitcoin price (which stands at $27,289 at the time of writing), the fall in price would then represent nearly 75%.

Is the queen of cryptocurrencies a risky asset?

“Bitcoin (BTC) can be a risky asset like gold in the economic situations we live in. But it won’t be a risk asset when it shows greater divergence from equities.” This was explained by Mike McGlone duringan interview with Scott Melker on Macro Monday.

To justify his remarks, McGlone presents an analysis of bitcoin. “Before the massive liquidity pump in 2020, bitcoin (BTC) had an average price of $7,000 (in 2019). The price was able to rise to $60,000. But now the price sits at $27,000. Which is four times the duly quoted price. And yet, he still risks reverting to the mean.he explained.

The price of bitcoin (BTC) will it drop to $7,000 in the coming months ? That’s a high probability for Mike McGlone, but a nightmare for those crypto investors expecting an uptrend. Vigilance is therefore essential! To be continued…

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