02 June 2023 17:50, UTC
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Crypto News: Prominent Bloomberg analyst, Mike McGlone, has expressed skepticism regarding Bitcoin’s price journey in recent times. To further add insights to his hypothesis, McGlone released his June Crypto Outlook report, which further forecasts a catastrophic downfall for the flagship cryptocurrency along with the entire crypto market in the coming months.
McGlone Warns Of Bearish BTC Outlook
In his report, the senior macro strategist at Bloomberg Intelligence, presents a bearish outlook for Bitcoin, highlighting various factors that could contribute to its decline. Moreover, he suggests that the worst may not be over for Bitcoin, citing current trends, underlying causes, and the Federal Reserve’s bias.
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According to McGlone, the crypto market is set to face its first recession in the United States, a possible bear market for equities, banks steering away from crypto post-FTX and high interest rate competition. These factors, he argues, could potentially hamper the future prospects of the Bitcoin and other major altcoins dominating the crypto sector.
Bitcoin’s Resilience In Doubt As Risks Loom
McGlone’s report characterizes the speculative excesses of the “biggest liquidity pump in history” leading up to the 2021 peak as a significant risk factor. He believes that the risks for the Bloomberg Galaxy Crypto Index are presently weighted negative, with plunging commodities, producer prices, and bank deposits signaling potential deflationary indications and a lag in the Federal Reserve’s tightening measures.
A notable observation from McGlone’s market analysis is the unusual weakening of Bitcoin, Copper and equities in China compared to the stalwart Nasdaq 100 Stock Index. Furthermore, the fact that Nasdaq’s performance alone could uplift the entire market contrasts with the rising expectations of a Fed rate hike. These factors have eventually led him to conclude that Bitcoin, despite its strength, may be too young to outperform traditional safe-haven assets like gold in the event of a US economic contraction.
McGlone’s bearish forecast challenges the optimism surrounding Bitcoin’s recovery and raises important questions about the BTC’s future trajectory. As the crypto market continues to navigate the complex landscape, it remains to be seen whether McGlone’s analysis will prove accurate or if Bitcoin will defy the odds and regain its bullish momentum.
At the time of writing, Bitcoin’s price is currently exchanging hands at $27,091.79, which represents a gain of 0.13% over the past 1 hour compared to an increase of 0.37% over the last 24 hours.
Also Read: Renowned Economist Predicts Federal Reserve To Skip June Rate Hike
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