- Mike McGlone is cautioning about the significant downside risk Bitcoin may face, referring to the cryptocurrency as an important “800-pound gorilla” of downside risk that it may currently be exposed to.
- McGlone compares Bitcoin’s trajectory with that of traditional assets, particularly emphasizing the recent extreme price surge in Bitcoin.
- McGlone suggests that a drop below the $25,250 support level in Bitcoin could trigger a deeper bearish trend.
Renowned analyst Mike McGlone has highlighted downside risks in Bitcoin alongside rising interest rates and provided price predictions for BTC.
McGlone Issues a Warning on Bitcoin Price
In the world of crypto, Bloomberg analyst Mike McGlone is cautioning about the future of Bitcoin, referring to the cryptocurrency as an important “800-pound gorilla” of downside risk that it may currently be exposed to.
In a recent interview on macroeconomic trends, Senior Macro Strategist at Bloomberg Intelligence, Mike McGlone, voiced his concerns about the current state of Bitcoin.
McGlone emphasized that Bitcoin has ushered in a new era characterized by low-interest rates transitioning into rising interest rates—highlighting that this factor could significantly impact the future trajectory of cryptocurrencies.
McGlone even suggests that Bitcoin is undergoing a “turn” process currently influenced by the Federal Reserve’s tightening of monetary policy. This change carries potential consequences for the value of Bitcoin.
Rising interest rates can have different consequences on various assets. For instance, risky investments like Bitcoin may lose value. This suggests that investors may seek more secure alternatives with more attractive yields, such as government bonds. According to McGlone’s analysis, this could potentially lead to Bitcoin losing more than 5% of its current value.
Additionally, McGlone compares Bitcoin’s trajectory with that of traditional assets, particularly emphasizing the recent extreme price surge in Bitcoin. He also points out potential changes in Bitcoin’s future behavior by drawing parallels with Amazon’s stock and other high-risk assets.
McGlone Highlights Potential Bitcoin Price Trajectory
Mike McGlone expressed concerns about downside risks in Bitcoin. He also revealed possible price targets for the cryptocurrency in the coming months.
McGlone suggested that a drop below the $25,250 support level in Bitcoin could trigger a deeper bearish trend. This could potentially push the price down to $24,170 or even lower.
McGlone noted that a sustained break of the $31,000 resistance level could pave the way for a positive trend. Such an achievement could potentially propel Bitcoin to new all-time highs above $35,000 throughout the year.
