Bloomberg senior macro strategist Mike McGlone hinted that the top cryptocurrency could fall to $20,000 despite recent gains. Even the institutional appetite on the part of BlackRock and other giants will not help this. McGlone shared his opinion in a monthly report.
He began with an overview of the potential problems facing cryptocurrency. Factors such as a possible bear market and central bank crackdown could threaten #BTC's bullish trajectory.
The analyst emphasized that even the launch of a Bitcoin ETF in the United States will not protect the digital currency from these threats. After all, a falling economy reduces liquidity for all assets. Given the possibility of a recession in the coming months, the situation for BTC may become more complicated.
At the end, McGlone concluded that Bitcoin will likely trade near the $20,000 support level rather than the $40,000 resistance level.
The Federal Reserve recently paused a series of interest rate hikes, giving investors some breathing room. As a result, the markets showed significant growth, and Bitcoin was able to break through the $30,000 mark.
However, Fed Chairman Jeremy Powell made it clear that the authorities will resume raising rates. At the same time, the official is confident that Bitcoin and other strong cryptocurrencies will withstand such conditions.