In a recent interview with crypto influencer Scott Melker, Bloomberg Intelligence’s senior macro strategist, Mike McGlone, reaffirmed his long-term prediction of Bitcoin (BTC) reaching $100,000. However, he cautioned that the cryptocurrency could experience a significant dip before achieving that milestone.
McGlone emphasized that he initially made the call for Bitcoin to reach $100,000 when it was trading below $20,000. While he remains confident in the six-figure price target for the long term, he believes it is more likely for Bitcoin to undergo a 50% correction and fall to the $20,000 level or even establish a new low before embarking on a parabolic trajectory.
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To support his forecast, McGlone pointed to the current conditions in the financial markets, specifically Treasury bills that offer an attractive yield of over 5%. He also noted the Federal Reserve’s continued tightening of monetary policies, which could have implications for various asset classes, including cryptocurrencies.
The Bloomberg strategist referred to the Case-Shiller index, a tool used to track changes in real estate prices, highlighting its recent decline of 1%. Comparing this to the surge of 20% observed before the 2006 real estate bubble, McGlone suggested that such market shifts may indicate an impending stock market correction.
Regarding Bitcoin’s potential to ignite a bull run, McGlone expressed some reservations due to the prevailing macroeconomic environment. Despite the positive developments, such as the introduction of Exchange-Traded Funds (ETFs) in the cryptocurrency space, he pointed out that Bitcoin’s price performance has been lacklustre compared to traditional markets like the NASDAQ, which has demonstrated more stability since 2020.
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At the time of the interview, Bitcoin’s price was approximately $29,150, showing a slight downtrend of about 2% in the last 24 hours. McGlone’s cautious sentiment may be influenced by the macroeconomic climate and ongoing policy decisions by central banks, which could impact the overall cryptocurrency market.
Despite his current reservations, McGlone’s long-term bullish outlook on Bitcoin remains intact. He believes that, eventually, the cryptocurrency will reach the $100,000 mark, albeit after navigating potential short-term volatility and market corrections.
As with any financial prediction, it is essential to note that the cryptocurrency market is highly volatile and subject to rapid fluctuations. Investors should exercise caution and conduct their research before making any investment decisions based on market predictions.