Bitcoin's Potential Drop and Long-Term Outlook According to Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence
In his latest interview, Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, discussed the future of Bitcoin amidst the current market downturn. However, the experienced analyst wasn't entirely pessimistic, as he also spoke about the long-term outlook for the flagship cryptocurrency.
It is worth mentioning that Bitcoin has been subject to significant price fluctuations since its inception. In the interview, McGlone compared Bitcoin's volatility to that of the stock market in its early days. His predictions were based on his analytical observations, which sparked both concern and agreement.
One statement that stood out in McGlone's interview was his belief that Bitcoin could potentially drop to a low of $8,000 during this downturn. Despite the possibility of such a drastic decline, McGlone emphasized that Bitcoin remains the most powerful asset in the world. He explained that Bitcoin lacks deflationary properties like treasury bonds and gold.
Instead, he pointed out that macroeconomic elements, particularly the Federal Reserve's ongoing tightening policy, continue to have a significant impact on the price of Bitcoin.
Institutional Influence: Not the Immediate Boost Many Expect?
Another widely held belief in the crypto community is that the approval of spot exchange-traded funds (ETFs) and an influx of institutional investors would propel Bitcoin's price to new heights.
However, McGlone expressed skepticism regarding this opinion. According to him, while the approval of a spot ETF may influence market sentiment, it may not have significant effects on Bitcoin's price trajectory. McGlone suggested that the earliest spot ETF may not see the light of day until next year.
When speculating on which entity could take the first step towards spot ETFs, McGlone placed his bets on BlackRock. He highlighted the institution's dominant presence in the market and its reputation as the world's leading asset manager, suggesting that BlackRock could be a leader in the spot ETF space.
Despite these short-term predictions, McGlone remains confident in Bitcoin's long-term bullish outlook. He reiterated his vision that the crypto giant will eventually reach a value of $200,000.
Meanwhile, following Grayscale's legal victory against the US Securities and Exchange Commission (SEC), Bitcoin has significantly dropped from its Tuesday high of $27,974 and was trading at $26,885 at the time of writing.
Additionally, Bitcoin's daily trading volume has decreased along with its price, dropping from a high of $12 billion last Thursday to $10 billion in the past 24 hours. It is worth noting that Bitcoin's market capitalization currently stands at $523 billion.
It is evident that Bitcoin's current price movement and market conditions have generated considerable discussion and speculation. While McGlone's insights shed light on the potential trajectories and influences on Bitcoin's price, it remains to be seen how the cryptocurrency will navigate through this challenging period.
Featured image from Unsplash, chart from TradingView.
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