Bitcoin (BTC) “will fall off a cliff”! Insights from a Bloomberg analyst

While Bitcoin is booming at the Miami Beach conference, Mike McGlone has made an unpleasant prediction for crypto investors. According to his analysis, the flagship cryptocurrency will suffer a decline if the conditions mentioned below happen.

A drop in the S&P 500 will lead to a Bitcoin decline

McGlone is neither pessimistic nor a Bitcoin hater. As the Senior Commodity Strategist at Bloomberg Intelligence, he has frequently made predictions about Bitcoin. For example, last August, he suggested that the queen of cryptocurrencies was approaching $100,000. A milestone that has yet to be reached. Can we still trust Mike McGlone when it comes to the fate of Bitcoin?

In a recent interview with the YouTube channel On The Margin, the Bloomberg analyst discussed hot topics such as the “debt ceiling, why deflation (not inflation) is ahead and his outlook for both commodities & hard asset’s, such as Gold & Bitcoin,” as stated in the interview’s introduction.

The Daily Hodl quoted a few of his statements:

“My base case is [the S&P 500 index] is going to 3,000, Bitcoin’s going to go down, I don’t know how far. It might make a new low. Cryptos will go down real hard. We’re going to purge some of these 24,000 cryptos. Get rid of some. They’re just silly. But Bitcoin, Ethereum will come out ahead.”

In other words, there will be a purge in the very near future. This will certainly impact Bitcoin and Ethereum but not completely annihilate them. Only the “shitcoins” will disappear from the picture.

At the time of writing this article, BTC was trading at $26,886.

What about the conditions for this “purge”?

According to McGlone, a descent of the S&P 500 to $3,000 will cause this correction and consequently, the aforementioned purge.

“So my base case is that’s going to happen, S&P 500 goes to 3,000. Yields drop a lot,” he adds.

He has also predicted that this slowdown will last for months and could extend into next year.

“Next year will be more enduring. It will just continue that… You have to get through this enduring period of a severe, I would say, purge of assets. That’s my base case,” McGlone maintains.

It is worth mentioning that Mike McGlone previously put forth the thesis of an upcoming economic storm in mid-April. While being very confident about the future of major cryptocurrencies like Bitcoin and Ether, he suggested getting rid of memecoins. These latter ones are currently riding the wave of popularity.