Bloomberg macro strategist expects bitcoin (BTC) to fall to $20,000
Date: 2023-06-26 Author: Karina Ziganova Categories: BLOCKCHAIN
Bloomberg macro strategist Mike McGlone said that the impending recession will force the price of bitcoin (BTC) to test the $20,000 level again. On Friday, he tweeted that the recent rally of the main cryptocurrency will soon face strong resistance.
"Bitcoin at $20,000 or $40,000? In the face of the Fed, recession, and the Nasdaq, a potential ETF launch will not protect BTC from a potential bear market in stocks and vigilant central banks. Consider this a lesson about the confrontation of high-risk assets, negative liquidity and economic downturn.
McGlone added that liquidity continues to slip out of the markets, with many central banks outside the U.S. raising interest rates this month.
"Bitcoin's key pivot point has been around $30,000 since 2021, when most risky assets rose in price amid the largest surge in the money supply in history. That the liquidity tug-of-war is still ongoing, with most central banks continuing to tighten rates in June, could be an obstacle. Even though risky assets rebounded on hopes of a mild recession in the United States and easing by the Fed," he said.
McGlone warned of the existence of a number of economic signals that indicate the onset of a recession within a few months. He has previously stated that the worst times for bitcoin are yet to come, citing a liquidity shortage in the second half of 2023. The Bloomberg macro strategist also noted that the main cryptocurrency is lagging behind the recent growth of the Nasdaq 100 stock index,which may have peaked, and FF13 federal funds futures show no potential for additional liquidity feeding.
Villu Wu is confident in the further growth of bitcoin
Meanwhile, another leading crypto analyst, Willy Wu, believes that bitcoin still has room to grow. On Friday, he said that "digital gold" could rise by more than 30% from current levels before becoming overbought.
Wu noted that the rise in the price of the main cryptocurrency to $31,000 was caused not only by positive news about the possible launch of a spot bitcoin ETF, but also by the continued accumulation of coins by long-term investors. The analyst believes that during the current rally, BTC can overcome the $31,000 level.
