The senior macro analyst at Bloomberg Intelligence paints a gloomy picture for Bitcoin.
According to McGlone, the cryptocurrency market is bracing for the first U.S. recession.
Well-known Bloomberg analyst Mike McGlone is skeptical about Bitcoin’s recent price movement. McGlone issued his June Crypto Outlook report, which predicts a catastrophic decline for the flagship cryptocurrency and the whole crypto market in the next months, lending more support to his prediction.
The senior macro analyst at Bloomberg Intelligence paints a gloomy picture of Bitcoin in his analysis, citing a number of potential causes that might lead to the cryptocurrency’s depreciation. Furthermore, he argues that current patterns, fundamental reasons, and the Federal Reserve’s bias imply that Bitcoin’s worst may not yet be over.
Bracing for First U.S Recession
According to McGlone, the cryptocurrency market is bracing for the first U.S. recession, a likely bear market for stocks, bank hesitance in the wake of the FTX, and intense interest rate rivalry. As per his analysis, these variables pose a threat to the long-term viability of Bitcoin and other leading altcoins in the cryptocurrency market.
McGlone’s analysis labels the “biggest liquidity pump in history” leading up to the peak in 2021 as a serious risk factor due to its speculative excesses.
Moreover, McGlone’s examination of the market shows that Bitcoin, Copper, and Chinese equities have been unusually weak relative to the reliable Nasdaq 100 Stock Index. Moreover, the increased anticipation of a Fed rate rise contrasted with the notion that Nasdaq’s success alone may raise the whole market.
As a result of these considerations, he has come to the conclusion that, despite Bitcoin’s growth, it may still be too young to outperform conventional safe-haven assets like gold in the case of a US economic collapse.