Bitcoin (BTC): Here's the warning from an analyst!

Many people are currently betting on Bitcoin to cope with the ongoing financial crisis that has been plaguing us for several months now. However, Mike McGlone, Bloomberg’s macro strategist analyst, wanted to warn them: the price of Bitcoin (BTC) may experience an exponential drop in the coming months.

That the #FederalReserve has kept hiking rates in 1H despite a bank run, plunging commodities and producer prices may portend deflation potential for risk assets. Peaking #Bitcoin and #copper vs. rallying #equitymarkets appears as an unsustainable trajectory. pic.twitter.com/deEhESQ62u

— Mike McGlone (@mikemcglone11) May 22, 2023

A bearish feeling on Bitcoin (BTC)

Indeed, Bitcoin (BTC) has experienced four spectacular increases since the increase in the money supply by the Federal Reserve (Fed). For example, in April, it skyrocketed to $30,000. However, according to a Bloomberg analysis, the value of this cryptocurrency could plummet exponentially.

According to Mike McGlone, the price of Bitcoin (BTC) could drop to $7,000 due to the lack of liquidity and the rise in interest rates. Based on the current price of Bitcoin (which stands at $27,289 at the time of writing), the price drop would represent nearly 75%.

Is the queen of cryptocurrencies a risky asset?

“Bitcoin (BTC) can be a risky asset like gold in the economic situations we are experiencing. However, it will not be considered a risky asset when it shows greater divergence from stocks,” explained Mike McGlone during an interview with Scott Melker on the Macro Monday show.

To justify his statements, McGlone presents an analysis of BTC. “Before the massive liquidity pump in 2020, Bitcoin (BTC) had an average price of $7,000 (in 2019). The price was able to reach $60,000. But now, the price is at $27,000, which is four times the duly mentioned price. And yet, it still risks returning to the average,” he explained.

Will the price of Bitcoin (BTC) drop to $7,000 in the coming months? It’s a strong possibility for Mike McGlone, but a nightmare for crypto investors who expect a bullish trend. Caution is therefore advised! Stay tuned…