Bloomberg Intelligence’s senior macro strategist Mike McGlone is doubling down on his $100,000 Bitcoin (BTC) prediction however says that the king crypto may encounter a significant setback on the best way.
In a brand new interview with crypto influencer Scott Melker, McGlone says that he nonetheless envisions the king crypto ultimately hitting a six-figure price ticket however warns it’d dip under the $20,000 degree en path to doing so.
“Keep in mind, I made the decision for [a] $100,000 Bitcoin when it was buying and selling under $20,000… I nonetheless follow that in the long run, however I feel it’s extra prone to drop 50% and get right down to $20,000, even make a brand new low earlier than it goes on that trajectory.”
To assist his prediction, McGlone factors towards Treasury payments paying out over 5% and the Federal Reserve’s persevering with financial tightening insurance policies.
“After I see issues like, I can get 5 and 1 / 4 in a Treasury invoice? Finished.
I have a look at the Case-Shiller index or the Home index. It simply was virtually on the highest ever proper earlier than like 2006, up 20%. Now it’s down 1%. That’s collapsing.
I have a look at the Fed nonetheless tightening and the very last thing that at all times often falls is the inventory market, simply have a look at your historical past.”
The Case-Shiller index is designed to trace modifications in actual property costs throughout the nation. The index hit its all-time excessive in June final yr and has been trending down since.
McGlone goes on to say that BTC might not be capable of spark a bull run because of the macroeconomic surroundings.
“I’d like to be bullish [on] Bitcoin, however should you have a look at that worth proper now at $30,000, the primary time it traded (at) $30,000 was proper on the finish of 2020, proper the start of 2021. So it’s unchanged.
And should you have a look at the NASDAQ over the identical interval, it’s up 20%, but the volatility in NASDAQ is half that of Bitcoin.
So proper now, Bitcoin’s nice. It’s bought all these ETFs (exchange-traded funds) coming in. We now have the hopium for the ETFs, however the precise efficiency versus the NASDAQ – which has bought AI and every thing going for it – I have a look at it as [if] I’m disillusioned, and I feel the issue is I sense method [too] a lot bullishness, however but the macro may be very unfavorable. The Fed continues to be taking away the punch bowl.”
Bitcoin is buying and selling for $30,030 at time of writing, a fractional enhance on the day.
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