Bloomberg Intelligence senior macro strategist Mike McGlone is doubling down on his $100,000 Bitcoin (BTC) prediction, but says the king of cryptocurrencies could meet a major setback down the road.
In a new interview with cryptocurrency influencer Scott Melker, McGlone says he still envisions the king of cryptocurrencies eventually reaching a six-figure price, but warns that it could drop below the $20,000 level on the way to doing so.
“Remember, I made the call to [a] $100,000 Bitcoin when it was trading below $20,000… I’d still hold onto that long-term, but I think it’s more likely to drop 50% and hit $20,000, even hit a new low before it goes down that trajectory.”
To back up his prediction, McGlone points to Treasury bills paying more than 5% and the Federal Reserve’s continued tightening policies.
“When I see things like, can I get five and a quarter on a Treasury bill? Made.
I look at the Case-Shiller index or the House index. It was almost at the highest level ever just before, like 2006, 20% higher. Now it’s down 1%. That is collapsing.
I look at the Federal Reserve still squeezing and the last thing that always tends to fall is the stock market, just look at their history.”
The Case-Shiller Index is designed to track changes in real estate prices across the country. The index reached its all-time high in June of last year and has been on a downward trend ever since.
McGlone goes on to say that BTC may not be able to spark a bull run due to the macroeconomic environment.
“I would love to be optimistic [on] Bitcoin, but if you look at that price right now at $30,000, the first time it traded (to) $30,000 was right at the end of 2020, right at the beginning of 2021. So it hasn’t changed.
And if you look at the NASDAQ over the same period, it’s up 20%, but the volatility on the NASDAQ is half that of Bitcoin.
So right now Bitcoin is great. All these ETFs (exchange traded funds) are coming in. We have the hops for ETFs, but the actual performance compared to the NASDAQ, which has AI and everything going for it, I see as [if] I’m disappointed, and I think the problem is that I feel the way [too] a lot of optimism, but even so the macro is very unfavorable. The Federal Reserve keeps taking off the punch bowl.”
Bitcoin is trading at $30,030 at the time of writing, a fractional increase on the day.
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