Bloomberg Analyst Predicts Deadly Bitcoin and Crypto Sector Crash
Mike McGlone, a prominent analyst at Bloomberg, is doubtful about Bitcoin’s recent price increase. More evidence for McGlone’s Bitcoin crash forecast is provided by his June Crypto Outlook report, in which he forecasts an unprecedented drop for the leading cryptocurrency and the entire crypto sector over the next several months.
The senior macro analyst at Bloomberg Intelligence presents a bleak outlook for Bitcoin, listing many factors that might contribute to the devaluation of the cryptocurrency. He goes on to say that Bitcoin may not have seen its darkest days yet, based on recent trends, fundamental causes, and the Federal Reserve’s bias.
Cannot Withstand Economic Meltdown
McGlone claims the crypto market is preparing for the first U.S. recession, a potential bear market for equities, cautious bank behavior in the aftermath of the FTX, and fierce interest rate competition. According to his findings, these factors endanger Bitcoin and other top altcoins in the cryptocurrency market over the long run.
Due to its speculative excesses, McGlone’s report characterizes the “biggest liquidity pump in history” building up to the peak in 2021 as a severe risk factor.
Bitcoin, Copper, and Chinese Equities have all been exceptionally weak compared to the stable Nasdaq 100 Stock Index, according to McGlone’s analysis of the market. In addition, the idea that Nasdaq’s performance might boost the whole market was at odds with the growing likelihood of a rate hike from the Federal Reserve.
He has concluded that Bitcoin, despite its development, may still be too young to beat traditional safe-haven assets like gold in the event of a US financial meltdown.