Will Bitcoin Price Crash To $10,000? Bloomberg Expert Reveals When
October 04 2023 - 4:00PM
NEWSBTC
Many analysts have weighed on the potential trajectory of the
flagship cryptocurrency, Bitcoin. This time, Bloomberg analyst Mike
McGlone has highlighted the possibility of Bitcoin price declining
further and when this could happen. Bitcoin Price Could Decline
Further In a tweet on his X (formerly Twitter) platform, McGlone
noted that Bitcoin risks declining to $10,000 (which could happen
by year-end) as it continues to battle the $30,000 resistance
level. This resistance level has long been touted as the key
to a sustained breakout in Bitcoin’s price. However, going by the
analysis that McGlone shared, the odds seem to be against this
happening. Bitcoin has risen significantly in 2023,
considering that the crypto asset traded at around $16,000 at the
beginning of the year. But, McGlone warned that this may be a
“short-covering rally.” As part of this analysis, he noted that
liquidity in the Bitcoin ecosystem remained negative heading into
the fourth quarter. This ultimately means there is more selling
pressure than buying pressure, which could affect Bitcoin’s
price. Another factor is the rising interest rates. McGlone
noted that Bitcoin gained prominence in a “zero interest-rate
world” with greater financial freedom. But now, Bitcoin (alongside
other cryptocurrencies) might continue to endure a hangover as
“global rates continue to rise.” Global inflation is said to
be on the rise, and to curb it, authorities are raising interest
rates, which could restrict spending and, by extension, the
liquidity that goes into the crypto market. Meanwhile, the
analysis noted Bitcoin’s importance in the grand scheme of things.
Bloomberg Intelligence drew a correlation between the FED fund
futures and Bitcoin’s price. According to projections, Bitcoin
needs to decline further before there can be a liquidity reversal
in those funds. While the Federal Reserve may not care about
Bitcoin, he stated that Bitcoin’s “24/7-traded, leading indicator
status could be gaining traction.” BTC could fall to $10,000 |
Source: X The Fate Of The Broader Crypto Market In another tweet,
McGlone noted that cryptocurrencies “might be leaning into
recession.” To drive home this point, he highlighted the relation
between the crypto and stock market and stated that the latter
could succumb to an “ebbing tide” suppose the stock market were to
experience a “typical drawdown” due to a recession. Despite
the “broader on-and-of-again fluctuations,” this projection is said
to be reflected in the “downward trajectory” of the Bloomberg
Galaxy Crypto Index (BGCI) and Russell 2000 Index (RTY) from their
all-time highs in 2022. Both markets have remained tepid and
continue to consolidate as they anticipate a “catalyst” that could
spark a price surge. This analysis is similar to that of
crypto analyst Nicholas Merten, who, while drawing out the direct
relation between both markets, noted that if the stocks of big tech
companies like Apple and Microsoft don’t start picking up, there
could be a “really big problem” for the crypto market. BTC
price still holding above $27,000 | Source: BTCUSD on
Tradingview.com Featured image from Investor’s Business Daily,
chart from Tradingview.com
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