Bloomberg Intelligence’s senior macro strategist Mike McGlone is expressing bearish sentiment on Bitcoin (BTC) in the near term.
In a new interview on Kitco News, McGlone says that Bitcoin is flashing bearish signals even as other risk assets rise.
“If we have this downturn, we can just take money away from everybody, which is kind of a rule in bear markets, Bitcoin will suffer.
The key point is we need to see, at some point, [Bitcoin] to start showing divergent strength where it trades more like treasury bonds and gold in a deflationary environment. And it hasn’t been doing that.
It peaked basically at the end of Q1, got to around $31,000 on this hopium and ETFs [exchange-traded funds], then it dropped back down to $25,000 or around $26,000. Now it’s showing divergent weakness to the stock market going up.”
According to McGlone, an “economic reset” will mean that Bitcoin’s recent downtrend will persist, though the flagship crypto asset will eventually hit a six-figure price.
“I think, eventually, it’s going to get to $100,000, but if we get the global economic reset I think we’re going to get – we get a normal deflationary recession, housing coming back down, stock market coming back down similar to 2008 but this is actually in some cases worse because we’re still taking liquidity from the system, Bitcoin is a great leading indicator.
And that’s my point. Lately, it’s been kind of leading the way down. It cut up around $31,000, and it’s been tilting back lower. I’m looking at it as a leading indicator for most risk assets.”
Bitcoin is trading at $26,079 at time of writing.
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