In an interview released on Wednesday (23 November 2022), Mike McGlone, a Senior Commodity Strategist at Bloomberg Intelligence (Bloomberg’s research arm on the Bloomberg Terminal”), predicted how low the Bitcoin price could go in the short to medium term.
During an interview on YouTube series “The Birb Nest”, according to a report by The Daily Hodl, McGlone told the host of the show’s host Adrian Zduńczyk:
“Initially, when the market broke down that was my indication it’s going to continue to break down because volatility is almost always a great indicator, particularly when you reach an all-time low. When markets breakout from a consolidating range with a good reason, it means it’s going down a lot lower. So that’s why I put out initially that Bitcoin might not reach a plateau until the $10,000-$12,000 area.“
On 9 November 2022, McGlone had this to say about how the collapse of SBF’s FTX empire could impact the Bitcoin price in the next several weeks:
“The breakdown of Bitcoin and crypto assets may trigger capitulation sell stops in most markets that have been under pressure this year... The great risk-asset reversion of 2022 has become clear as of November 9, but it’s the remaining trading sessions that may set the stage for 2023, with Bitcoin – one of the fastest horses in the race, and top leading indicator – breaching support and risks revisiting $10,000 support...
“The loss of confidence from FTX’s downfall and its leader, Sam Bankman-Fried, is a shock to cryptos, but the macroeconomic dominoes may be more significant.“
On 19 October 2022, McGlone had this to say about Bitcoin:
“It’s little surprise that a relatively new asset that had skyrocketed has declined due to the rapid pace of Federal Reserve tightening in 2022, but Bitcoin is showing signs of bottoming and divergent strength in 4Q. The lowest-ever crypto volatility vs. the Bloomberg Commodity Index may portend better performance for Bitcoin…
“Bitcoin’s ascending leading-indicator status and potential transition toward a risk-off asset like gold and US Treasury long bonds may be playing out in 2H [second half of the year]. Our graphic shows the primary headwind for most risk assets in 2022: aggressive Fed tightening to squash inflation. An indication of divergent strength for the crypto may be that its price of around $19,500 on Oct. 18, with the one-year federal funds future (FF13) signaling rates close to 4.75%, was about the same as it was in June, when FF13 was near 3.5%...
“The fact that the benchmark crypto hasn’t dropped along with the latest round of rate-hike expectations may also signal a Fed end game on the horizon. A top potential catalyst for central banks to curtail tightening is for markets, notably stocks and commodities, to do it for them, which may favor Bitcoin.“
He went on to add:
“Bitcoin’s definable diminishing supply is unprecedented on a global scale, and so prices should continue to rise over time unless something unlikely reverses demand and adoption trends, given the laws of supply and demand.“
He also said:
“Bitcoin may be entering an inexorable phase of its migration into the mainstream, and at a relatively discounted price.“
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