Bitcoin’s Bearish Indicators Point to Global Economic Reset, Says Bloomberg’s Macro Strategist
Bitcoin’s recent bearish indicators are reflecting a potential global economic reset, according to Mike McGlone, Bloomberg’s macro strategist. Despite other high-risk assets moving upwards, McGlone believes that Bitcoin’s downward trend will continue due to an anticipated economic reset. However, he still predicts that the flagship cryptocurrency will eventually reach the $100,000 mark.
In an interview with Kitco News, McGlone highlighted that a global economic reset would likely result in a normal deflationary recession, similar to the 2008 housing and stock market crash. He noted that Bitcoin acts as a leading indicator for most risk assets. McGlone explained, Lately, it’s been kind of leading the way down. It shot up to around $31,000 and has been tilting lower. I’m looking at it as a leading indicator for most risk assets.
The crypto analyst further emphasized that if a downturn occurs, Bitcoin, like other bear markets, would suffer as funds are withdrawn from the system. McGlone stressed the importance of Bitcoin demonstrating resilience, much like treasury bonds and gold do during deflation.
Bitcoin’s price peaked towards the end of the first quarter, reaching around $31,000 following hope surrounding ETFs, only to drop back down to $25,000 or $26,000. Currently, Bitcoin is displaying divergent weakness compared to the rising stock market.
As of writing, Bitcoin’s price stands at $26,026.94, representing a 2 percent decline over the past week.
While McGlone anticipates a global economic reset affecting Bitcoin’s performance, it’s worth noting that there are differing perspectives within the crypto space. Some analysts believe Bitcoin will experience a surge, citing factors such as institutional adoption and increased regulations. It remains crucial to consider a balanced viewpoint when assessing Bitcoin’s future prospects.
In conclusion, the bearish indicators exhibited by Bitcoin align with McGlone’s projection of a global economic reset. However, the cryptocurrency’s performance should be considered alongside other factors and alternative perspectives within the market. Investors must stay informed and remain vigilant as the crypto landscape continues to evolve.
