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Bitcoin Price In A Turbulent Week: This Crypto Market Strategist Weighs In

Bitcoin, the world’s largest and most well-known cryptocurrency, has had a tumultuous past few days, and according to Mike McGlone, a senior macro strategist at Bloomberg Intelligence, the volatility in the BTC market could very well impact other risk assets. 

McGlone believes that BTC’s influence on the market has become contagious, and as a result, other risk assets could be negatively affected if the price of BTC continues to decline.

McGlone’s comments are a reflection of the growing awareness of BTC’s influence on the global economy. As BTC continues to gain mainstream acceptance and adoption, its movements are being closely watched by investors and policymakers alike. 

Risk Assets At Risk? Bitcoin Network Congestion Raises Concerns

At a time when the Bitcoin network is currently facing unprecedented levels of congestion due to the influx of Ordinals, McGlone has shared his views on the potential impact of Bitcoin’s price decline on other risk assets.

Over the weekend, the congestion became so severe that major trading platforms like Binance were forced to temporarily halt some transactions.

According to McGlone on Twitter, if the current decline in the value of risk assets continues, Bitcoin has the potential to lead the rest of the volatile asset class downwards.

He emphasized that the influence of Bitcoin on the market is now contagious, and its impact can be felt across the financial system. 

In other words, if Bitcoin’s price continues to drop, it could trigger a domino effect that results in the decline of other risky assets.

Bitcoin’s Network Congestion, Volatility Raise Regulatory Concerns

McGlone’s comments regarding the potential impact of Bitcoin’s price volatility on the broader financial system come at a time when investors are growing increasingly worried.

The cryptocurrency’s fluctuations could potentially have ripple effects on the global economy, underscoring the need for regulatory oversight.

Meanwhile, the current BTC price, as reported by CoinGecko, has decreased by 0.89% in the past 24 hours and 1.28% over the last seven days, indicating a general downward trend.

This downward trend could exacerbate concerns about Bitcoin’s potential impact on the financial system and prompt calls for increased regulatory measures.

The recent halt of transactions on major platforms such as Binance due to network congestion issues also highlights the urgent need to find a solution. If left unaddressed, network congestion could lead to significant disruptions in the cryptocurrency market.

As such, regulators must take swift action to mitigate the risks associated with the market’s volatility and ensure its stability.

-Featured image from Global News

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Mike McGlone Says $20,000 Is The New $5,000 For Bitcoin, But Is He Right?

With the recent Bitcoin price crash has come a number of speculations out of the market. Amateurs and experts alike have been giving their predictions on what they believe will happen going forward. While most have been bearish, the forecast from Mike McGlone is a rather bullish one. The Bloomberg analyst has sparked hope in the hearts of some with his forecast that $20,000 is the new $5,000 for bitcoin.

Good News For Bitcoin

McGlone took to Twitter to share his forecast for the leading cryptocurrency in the market. Panic had washed through investors when the digital asset had declined to the $20,000 level, tethering just slightly above it. While many believe that this was a signal for a further downtrend to come, some have said that it may have marked the bottom for the asset.

Related Reading | Bitcoin Funding Rates Remain Negative But Open Interest Tells Another Story

In his tweet, the Bloomberg analyst points to the early days of adoption in contrast with the diminishing supply of bitcoin may prevail. This argument is by no means a new one. The limited supply of BTC has long been one of its pulls for investors who believe that in the end, the scarcity of the cryptocurrency will be what drives its price higher. Mainly, McGlone suggests that BTC is approaching “too cold” levels, and as such, $20,000 may well be the new $5,000.

$20,000 #Bitcoin May be the New $5,000 – The fundamental case of early days for global Bitcoin adoption vs. diminishing supply may prevail as the price approaches typically too-cold levels. It makes sense that one of the best-performing assets in history would decline in 1H… pic.twitter.com/f5MImdhzgD

— Mike McGlone (@mikemcglone11) June 15, 2022

What this implies is that the bottom of the current downtrend may be in. Looking at the previous bear market, it is obvious that the bottom was clocked right when the price had fallen below $6,000 in the early days of 2022. If so, then there is no further decline for the digital asset from this point.

BTC resumes downtrend | Source: BTCUSD on TradingView.com
But Is The Bottom In?

Just as one historical movement can tell one story of the bitcoin bottom, so do the others. Now, it is known that the last bear market saw the price of bitcoin declined more than 80% from its all-time high. This trend has been closely followed through the bear markets. Despite the brutal crash in the last couple of days, bitcoin is still less than 70% down from its November all-time high. Given this, there may be more decline to come if it was to follow this trend.

Related Reading | Bitcoin Bounces Back Before Hitting 2017 Peak, Is The Bottom In?

However, there is another trend that lends credence to McGlone’s prediction. This is the fact that no matter the decline, the price of the digital asset has never fallen below the previous cycle peak. Given that bitcoin’s last peak was a little under $20,000, the bottom may indeed be in if this trend is held.

One thing to note though is that the present market has been deviating from previously established trends. It had begun with the multiple bull rallies of 2021 and now has carried into the bearish market of 2022. So, maybe there will be more breaking of historical trends to come. 

Featured image from Cryptoknowmics, chart from TradingView.com

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Bloomberg Strategist: This Is The Defining Moment To Buy Bitcoin

The escalation of tensions between Russia and Ukraine continues apace, and all global markets have plummeted today. During this crisis, the leading cryptocurrency Bitcoin (BTC), which was trading for $34,000 at the time, retreated then recovered. This, according to a well-known analyst, is the perfect time to invest in Bitcoin.

Bitcoin Falls Following Tensions

Bitcoin rose little after Wall Street began on February 24, with markets still focused on Russia’s invasion of Ukraine and its aftermath.

BTC/USD was nearing $36,400 on Bitstamp two hours after the opening bell, up $2,000 from its recent lows, according to data from TradingView.

Russia’s nighttime foray into Ukraine, which persisted and ricocheted across global commerce, rocked jittery markets.

Related Article | Stifel says Three Macro Factors Could Drop Bitcoin Price To $10,000

Russia’s stock market, however, suffered a different amount of stress, with MOEX losing 50% of its value and briefly suspending trade.

Bitcoin, which had been on the decline earlier in the day, has made a nice recovery.

BTC/USD trades at a $36k amid crisis. Source: TradingView

Sahil Sakhrani, a market analyst at crypto research firm Macro Hive, said:

“At the start of the week, escalating tensions between Russia and Ukraine had hit crypto markets hard. Our crypto indices were already showing sizeable losses across all sectors.”

Sakhrani cautioned that the imposition of fresh sanctions against Russia’s economy might exacerbate the issue further, and that Bitcoin’s relationship with traditional stock markets should not be neglected.

Mike McGlone Says This is A Buying Opportunity

Bloomberg senior commodity analyst Mike McGlone told Scott Melker, presenter of the Wolf of All Streets podcast, that the markets are overdue for a large correction, most notably in equities, but also in the crypto market.

McGlone, in particular, believes that this is a “defining moment” for the digital asset; despite the uncertainties, he sees this as a “very good buying opportunity” for long-term investors who have been sitting on cash.

The commodity strategist said:

“The key thing to point out here is cryptos and Bitcoin are still risk assets and they’re giving up back a lot of gains. I still think there is more pain there. I don’t think Bitcoin gets much below $30,000 its holding good resistance around $40,000. I think this is ultimately going to be a very good buying opportunity for Bitcoin for longer-term traders. It’s going to be looked back upon in history as a defining moment.”

Related Reading | Bitcoin Prices Bear The Brunt Of Long Liquidations And Geopolitical Tensions

Featured image from Pixabay, chart from TradingView.com

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Bitcoin Bloodbath Continues, Bears Grip Put in Extreme Fear Territory

To the sound of war drums between Russia and Ukraine, Bitcoin continued its downward spiral on Monday. Over the weekend, the digital currency par excellence lost crucial support below $40,000, and on Monday, it made a low below the next control zone at $37,000. Despite closing near $38,000, the crypto currency is swinging around the aforementioned crucial support, according to TradingView data, and threatens to extend its losses.

Bitcoin’s price has dropped for six days in a row. Late last night, the pioneer fell to $36,545 — its lowest level in two weeks. This is around 45 percent lower than the all-time high set in November.

BTC/USD trades at $37k. Source: TradingView
Sentiment Shift Extreme Fear

Experts, on the other hand, are becoming pessimistic after the digital currency fell sharply after failing to break through the $45,000 resistance barrier, and many anticipate that the $30,000 level will be reintroduced.

It’s understandable that investors are concerned, given how crypto values have fluctuated in recent months. The Federal Reserve’s decision to scale back on pandemic-related economic stimulus measures, as well as mining difficulties in Kazakhstan, initially weighed on prices. However, most cryptos have struggled to regain any traction.

Bitcoin Fear and greed index.

The index serve as a good indicator of investor sentiment. It considers a variety of indicators, including as trade volumes, social media activity, and volatility. The market scored 84 in November, when prices were at all-time highs, putting it in severe greed territory.

Related Reading | Bitcoin Prices Bear The Brunt Of Long Liquidations And Geopolitical Tensions

Bloomberg Analyst Optimistic

Mike McGlone, a senior commodity strategist at Bloomberg, has an intriguing prediction for Bitcoin. McGlone had already tweeted on Sunday, February 20, that Bitcoin could suffer significant headwinds in the near future. He goes on to say that inflation won’t go down unless risk assets fall, which hasn’t happened yet.

Despite the grim short-term forecast, McGlone believes Bitcoin is on the verge of establishing a new trend. McGlone also stated that a majority of assets will respond to the “ebbing tide” in 2020, as the Fed’s financial tighten policies.

However, as inflation tightens its grip, McGlone predicts Bitcoin will reach a key milestone in 2022. Last Sunday, the Bloomberg analyst wrote on Twitter, ”

Bitcoin indicating a rough week ahead – Inflation Unlikely to Drop Unless Risk Assets Do: Most assets are subject to the ebbing tide in 2022, on the inevitable reversion of the greatest inflation measures in four decades, but this year may mark another milestone for Bitcoin.

#Bitcoin indicating a rough week ahead – Inflation Unlikely to Drop Unless Risk Assets Do:Most assets are subject to the ebbing tide in 2022, on the inevitable reversion of the greatest inflation measures in four decades, but this year may mark another milestone for Bitcoin. pic.twitter.com/drnXyYea4F

— Mike McGlone (@mikemcglone11) February 20, 2022

 

McGlone previously said that Bitcoin has shown divergent strength as compared to equities. BTC is expected to reach $100,000 in 2022, according to Bloomberg’s Crypto Market Outlook for February. McGlone is positive on Ethereum (ETH) and stablecoins, commonly known as “crypto dollars,” in addition to Bitcoin.

Price prediction when it comes to Bitcoin has always been measured and conflicting. Some analysts are advising investors to purchase the drop in the hope of seeing the pioneer cryptocurrency reach $100,000 this year. Others are anticipating a crypto winter, with the price plummeting to zero.

Related Article | TA: Bitcoin Resumes Slide, Why BTC Bears Aim $35K

Featured image from Unsplash, chart from TradingView.com

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Market May Be Suffering But Bitcoin And Ethereum Will Pull Back Stronger, Bloomberg Analyst

Bitcoin and Ethereum have led the market in the recent downturns that have rocked the market. These two digital assets are no doubt market movers in their own right and as such, uptrends or downtrends begin with them. It has raised concern among investors who believe that the market is finally heading into a stretched-out bear market. However, not everyone believes this as some believe the current downtrend is only temporary.

Mike McGlone On Bitcoin And Ethereum

Mike McGlone is one of the leading Bloomberg analysts. Focused on the financial market, he authors a newsletter that shares his thoughts around various markets, including stocks and the crypto market. McGlone is currently one of the people with the most optimistic view of the market despite the various dips that have rocked the space. Most especially on the top digital assets in the crypto market.

Related Reading | Solo Ethereum Miner Hits The Jackpot With 170 ETH For Mining A Block

McGlone who was on The Wolf of all Streets podcast shared some interesting thoughts on the market, putting the analyst at an overall bullish position for bitcoin and ethereum.

BTC down to $38K | Source: BTCUSD on TradingView.com

The analysts point to the correlation with the stock market. This, he explains, is getting ready for a pullback and when this happens, bitcoin and by extension, ethereum, would benefit from this correction.

“Here’s my prediction: the markets pull back,” said Mike McGlone. “We finally get a 10%, maybe 20%, correction in the stock market. All correlations are one, which is usually the way it works. Bitcoin comes out better off for it. Ethereum, potentially too.”

This pullback though is only reflected on the top two cryptos which McGlone expects to recover after this.

Other Cryptos May Not Fare Well

Talking about other cryptocurrencies, the analyst took a more bearish stance on them. The positivity displayed in the podcast towards top coins bitcoin and ethereum did not translate to the rest of the market which he does not expect to fare well despite the pullback.

Related Reading | Ethereum Fee Averages Remain Above $30 Despite 35% Drop. Price Pump Incoming?

McGlone especially focused on dog coins which were arguably the winners of 2021. The craze which saw various meme tokens with no utility whatsoever soar to billions of dollars in valuation was referred to as “stupid” by the Bloomberg analyst.

“The rest of the space, we do have to admit, the speculation you saw in the dog coins last year was indicative of this. It’s just stupid and we’re going to tell the story to our grandkids,” he said.

Even for a digital asset like Solana which had a largely successful year, McGlone did not seem excited about it. He lumped SOL in with the dog coins, which he said were the riskiest of assets. “The bottom line is they are the riskiest of assets,” said McGlone. “There’s massive speculation. I mean the dog coins and even in things like Solana,” he added.

Featured image from Bitcoin news, chart from TradingView.com

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Bitcoin Set To Outperform In Second Half Of 2021, Bloomberg Analyst

As Bitcoin continues its tumultuous run through the market, analysts continue to see big things in store for the cryptocurrency. Bloomberg analyst Mike McGlone recently said in the August Edition of the Bloomberg Galaxy Crypto Index (BGCI) that the coin was set to outperform in the second half of the year. Already one month into the second half of the year, the market has seen the price of bitcoin breaking $40,000 for the first time since the market crash.

The report said bullish fundamental underpinnings would improve this second half. Likely relating to the continuous growth of the digital asset over the past two weeks. Continuing upward trends have put the digital asset at bullish trends that see the asset price increasing higher.

Related Reading | Wells Fargo Now Offers Cryptocurrency Investment To Clients

The report sees the current trends enduring, which would most likely push the assets to continue to outperform as the second half of the year plays out.

Bitcoin Reasserts Leadership Of Crypto Market

Bitcoin continues to be the number one cryptocurrency in the market. A large share of crypto market dominance continues to be held by the digital asset. With over 45% of market dominance belonging to bitcoin. This puts the digital asset at the top of the food chain when it comes to the cryptocurrency market.

The report points out that the pioneer cryptocurrency recently reasserted its dominance in the market with the recent 10% in the price, following the weekend rally that saw top crypto coins across the board gaining significant numbers in their price.

BTC price moves into downtrend | Source: BTCUSD on TradingView.com

Bitcoin was tied in with gold and long bonds as the top assets that were set to outperform this second half of the year. Pointing out their decades-long advancement and recent price dips as an enhancement for their current relative values.

Ethereum In Resting Bull Ark

The report also touched on the current movement of Ethereum along with bitcoin. Explaining that the continuing growing nature of the digitalized finance market will bring about an uptrend in the price of Ethereum.

Related Reading | Ethereum Set To Explode According To Market Dominance, Crypto Analyst

Ethereum has continuously outperformed in the market since its inception. So it is not a stretch to believe that the asset is set to outperform, following behind bitcoin. Ethereum still commands the second largest market cap in the crypto market. And is gaining more and more market share as the coin continues to gain more value. With upgrades set to happen on the network, ETH is going to be even more valuable than ever.

The report pointed out that adoption will increase for both Bitcoin and Ethereum. While dollar dominance will continue to remain a prominent theme in the market.

Featured image from Markets Insider, chart from TradingView.com