Bloomberg Intelligence Senior Macro Strategist Mike McGlone has recently shared he believes that the price of the flagship cryptocurrency Bitcoin ($BTC) is now in the “process of reverting” and could move downward in the near future.
In a recent Understanding Macro segment, McGlone noted that Bitcoin is emerging from a time characterized by unprecedentedly low-interest rates and is now grappling with a shifting monetary landscape marked by escalating rates, which could lead to the price reversion.
Per McGlone the “800-pound gorilla… the Federal Reserve,” is still hiking interest rates and tightening monetary policy. Traditionally, heightened interest rates have seen risk assets like Bitcoin decline in appeal, with the allure fading in comparison to the now-enhanced returns of safer alternatives like government bonds.
Drawing from this, McGlone speculates a potential for Bitcoin’s price to drop below the $25,000 mark, which could catalyze a broader withdrawal from other volatile assets. Projecting Bitcoin’s future course, the Bloomberg Intelligence analyst said he believes BTC’s price pump this year was excessive, as was the pump “in all risk assets.”
Nevertheless, McGlone believes that in the future BTC is “going to turn around and trade more like gold and treasury bonds.” As CryptoGlobe reported, prominent cryptocurrency analyst Benjamin Cowen has recently shared a sobering forecast on Bitcoin’s price trajectory, positing a potential dip to the $23,000 mark after the cryptocurrency traded within a specific range over the last few weeks.
Bitcoin’s upcoming halving event is set to occur in April 2024 and has inspired a number of bullish Bitcoin price predictions. As reported, investment research firm Fundstrat has suggested BTC could see a leap of over 500% from its current value to reach the $180,000 mark ahead of its upcoming halving.
Moreover, London-based multinational banking and financial services firm Standard Chartered has suggested that the price of the flagship cryptocurrency could surge to $50,000 this year, and could breach the $120,000 by 2024’s close in another major bullish price prediction for BTC.
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