Bloomberg’s macro strategist Mike McGlone shared his analysis of Bitcoin (BTC), the largest cryptocurrency by market cap. McGlone pointed to the potential for Bitcoin to experience a serious drop. He also talked about the $10,000-12,000 lows. Here are the details…
Bitcoin may visit the 10-12 thousand dollar levels
Bloomberg analyst Mike McGlone said that Bitcoin (BTC) is “ready to rise” following the current bear market, but could face a serious price drop first. In a new analysis, McGlone states that the potential for a global recession this year could be the most important factor in determining Bitcoin’s price. A report shared by McGlone says the drastic global economy slowdown could become the “best performance factor” for cryptocurrency in 2023.
But according to his data, economic growth will fall sharply, which will affect all assets, including crypto. Therefore, McGlone assumes that Bitcoin will revisit its former support at the $12,000-10,000 levels before continuing its “permanent upward price trajectory.” McGlone’s analysis includes the following statements:
Our thinking is that Bitcoin is more likely to stand out in most scenarios, but if the inverted yield curve is any indication, economic growth will fall sharply for all assets. The biggest crypto could revisit good support at around $10,000-12,000 before continuing its persistent upward price trajectory. A key difference from a year ago is the possibility that the Fed and most central banks will have to start expanding, backed by deflationary forces from falling asset prices.
BTC enters the mainstream
McGlone also argues that Bitcoin is “mature into the mainstream” and its value may actually be lower than it should be. He talks about the annual volatility of BTC poised to hit a new low against the Nasdaq 100 Stock Index in 2023. BTC is trading at $16,841 at the time of writing. The top-ranked crypto-asset by market cap is up 0.1 percent in the last 24 hours and nearly 2.5 percent in the last week. It fell more than 75 percent from its all-time high of $69,000, which it reached in November 2021.
Ethereum can surpass Bitcoin
On the other hand, according to the same report shared by McGlone, he expects Ethereum to outperform Bitcoin this year. The report says that despite the lack of major price action for ETH in 2022, the performance of the second largest coin compared to Bitcoin is promising. Ethereum’s promising potential may have been highlighted because of Merge. cryptocoin.com As we have also reported, Merge and Ethereum enabled the transition to the proof-of-stake consensus algorithm.
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