Categories: Bitcoin Latest News

Will Bitcoin Price Crash To $10,000? Bloomberg Expert Reveals When

Many analysts have weighed on the potential trajectory of the flagship cryptocurrency, Bitcoin. This time, Bloomberg analyst Mike McGlone has highlighted the possibility of Bitcoin price declining further and when this could happen.

Bitcoin Price Could Decline Further

In a tweet on his X (formerly Twitter) platform, McGlone noted that Bitcoin risks declining to $10,000 (which could happen by year-end) as it continues to battle the $30,000 resistance level

This resistance level has long been touted as the key to a sustained breakout in Bitcoin’s price. However, going by the analysis that McGlone shared, the odds seem to be against this happening. 

Bitcoin has risen significantly in 2023, considering that the crypto asset traded at around $16,000 at the beginning of the year. But, McGlone warned that this may be a “short-covering rally.”

As part of this analysis, he noted that liquidity in the Bitcoin ecosystem remained negative heading into the fourth quarter. This ultimately means there is more selling pressure than buying pressure, which could affect Bitcoin’s price. 

Another factor is the rising interest rates. McGlone noted that Bitcoin gained prominence in a “zero interest-rate world” with greater financial freedom. But now, Bitcoin (alongside other cryptocurrencies) might continue to endure a hangover as “global rates continue to rise.” 

Global inflation is said to be on the rise, and to curb it, authorities are raising interest rates, which could restrict spending and, by extension, the liquidity that goes into the crypto market. 

Meanwhile, the analysis noted Bitcoin’s importance in the grand scheme of things. Bloomberg Intelligence drew a correlation between the FED fund futures and Bitcoin’s price. According to projections, Bitcoin needs to decline further before there can be a liquidity reversal in those funds. 

While the Federal Reserve may not care about Bitcoin, he stated that Bitcoin’s “24/7-traded, leading indicator status could be gaining traction.”

The Fate Of The Broader Crypto Market

In another tweet, McGlone noted that cryptocurrencies “might be leaning into recession.” To drive home this point, he highlighted the relation between the crypto and stock market and stated that the latter could succumb to an “ebbing tide” suppose the stock market were to experience a “typical drawdown” due to a recession. 

Despite the “broader on-and-of-again fluctuations,” this projection is said to be reflected in the “downward trajectory” of the Bloomberg Galaxy Crypto Index (BGCI) and Russell 2000 Index (RTY) from their all-time highs in 2022. Both markets have remained tepid and continue to consolidate as they anticipate a “catalyst” that could spark a price surge. 

This analysis is similar to that of crypto analyst Nicholas Merten, who, while drawing out the direct relation between both markets, noted that if the stocks of big tech companies like Apple and Microsoft don’t start picking up, there could be a “really big problem” for the crypto market. 

[#item_full_content]NewsBTCRead More

Recent Posts

Bitcoin Flash Crash Causes $710 Million In Crypto Long Liquidations

Data shows the cryptocurrency derivatives market has suffered a massive amount of liquidations after the…

2 hours ago

Bitcoin’s Market at a Crossroads: Are Long-Term Holders Signalling a Correction or a Rally?

The role of Bitcoin long-term holders (LTHs) has again come under the microscope of analysts…

3 hours ago

Analyst Says Bitcoin Price At $100,000 Is A ‘Dangerous Zone’, Predicts Massive Crash

The Bitcoin price recently achieved a monumental milestone, crossing the $100,000 threshold for the first…

9 hours ago

The Joule Paradox: Energy sets the value of bitcoin and bitcoin sets the value of energy

Early in our thinking about the interaction between bitcoin and energy it became obvious to…

13 hours ago

Did Hawk Tuah Crypto Debacle Eclipse Bitcoin’s $100K Moment?

One bitcoin is worth $100,000 — a milestone that has <a href="https://www.coindesk.com/business/2024/12/05/bitcoin-at-100-k-industry-reaction" target="_blank">crypto OGs in…

14 hours ago

Crypto Daybook Americas: It’s Glass Half Full Despite Record Short Bitcoin ETF Volume

By Omkar Godbole (All times ET unless indicated otherwise) You know how it feels when…

17 hours ago