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Many people are currently betting on bitcoin to deal with the financial crisis that has been raging for several months now. Mike McGlone, Bloomberg macrostrategist analyst, however, warned them: the price of bitcoin (BTC) could fall exponentially in the coming months.
Bearish view on bitcoin (BTC)
Sure enough, bitcoin (BTC) has grown a staggering 4 times since the Federal Reserve (FED) increased the money supply. In April, for example, it explodes to $30,000. According to Bloomberg analysis, however, the value of this cryptocurrency could drop exponentially.
According to Mike McGlone, the price of bitcoin (BTC) will likely fall to $7,000 due to lack of liquidity and rising rates. Based on the current bitcoin price (which is $27,289 at the time of writing), the drop in price was then almost 75%.
Is the queen of cryptocurrencies a dangerous asset?
“Bitcoin (BTC) can be a dangerous 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.” Mike McGlone explained this during an interview with Scott Melker during Monday’s Macro show.
To defend his views, McGlone presents analysis of bitcoin. “Before the massive liquidity pump in 2020, bitcoin (BTC) had an average price of $7,000 (in 2019). The price could rise to $60,000. But now the price is set at $27,000. Which is four times the appropriately quoted price. And yet, there is a risk that it will revert to the mean.he explained.
Bitcoin price (BTC) will drop to $7,000 in the coming months ? That’s a high probability for Mike McGlone, but a nightmare for those crypto investors hoping for a breakout. Therefore vigilance is essential! To be continued…
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My name is Ariela and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago. But it’s a universe I’m very interested in. And the topics covered in the platform give me the opportunity to learn more. A singer in my spare time, I have a great passion for music and reading (and animals!)
The views and opinions expressed in this article are the sole responsibility of the author, and should not be considered investment advice. Do your own research before making any investment decision.