- Bitcoin’s rise to $40,000 may be temporary
- Concerns about potential obstacles and a possible downturn
- Analyst highlights the impact of the US crisis and Fed’s tightening policy
A senior analyst at Bloomberg, Mike McGlone, has suggested that Bitcoin’s bullish trend will not last long and has provided reasons for his claim.
Known for his comments on the cryptocurrency market, Mike McGlone discussed the current state of Bitcoin, mentioning the obstacles it faces and potential scenarios for a decline before reaching $40,000.
Bitcoin Analyst Predicts Short-Lived Bull Run
In a recent social media post, the analyst stated that the US crisis would affect all risk assets and suggested that Bitcoin may not escape the tightening policy of the Federal Reserve (Fed).
McGlone linked the recent rise in Bitcoin to US-based ETF applications and the Federal Reserve’s interest rate policies, indicating an impending recession.
According to McGlone, $20,000 has been a pivotal point for Bitcoin since 2021, and he detailed the potential consequences of a recession:
“Bitcoin 20,000 Dollars or 40,000 Dollars? The Fed, market stagnation, Nasdaq, the potential launch of Bitcoin ETFs, and other developments will not prevent Bitcoin from facing a US recession, a potential bear market in stocks, and central banks. Risk assets are facing negative liquidity and economic contraction.”
McGlone emphasized that $20,000 has served as a pivot point for Bitcoin since 2021 and explained the potential outcomes of a recession:
“The pivot point for Bitcoin, around $30,000 since 2021, when most risky assets gained value with the largest increase in money supply in history. Despite the ongoing liquidity tug-of-war due to many central banks continuing to tighten in June, risk assets may experience a headwind even if they have rebounded with hopes of a mild US recession and Fed’s easing.”
