• Bloomberg Intelligence’s senior macro strategist Mike McGlone predicts that Bitcoin (BTC) will drop lower due to upcoming recessionary headwinds.
• He believes the worst may not be over for Bitcoin, and expects a liquidity crunch in the second half of 2023.
• McGlone predicts that markets have priced in an optimistic outcome, but states that a downward trend will continue due to aggressive central-bank rate hikes.
Mike McGlone Predicts Bitcoin Will Drop Lower
Bloomberg Intelligence’s senior macro strategist Mike McGlone is predicting that Bitcoin (BTC) will experience a drop lower due to recessionary headwinds. In a new Crypto Outlook edition, he states that the worst might not be over for Bitcoin and foresees a liquidity crunch in the second half of 2023.
Optimistic Outcome Priced In
McGlone believes that while markets have bounced recently, their strength is not sustainable and anticipates a broader downward market trend continuing. He claims this is due to markets having priced in an optimistic outcome from long lags of aggressive central-bank rate hikes which are still rising.
Risk Assets May Feel Gravity From $7K Comfort Zone
The analyst has previously warned that Bitcoin could dip as low as $7,000 and now states that an expected US recession could push risk assets like BTC much lower. He explains how the pre-eminent 24/7 globally traded risk indicator may feel gravity from its comfort zone around $7,000 before the unprecedented 2020-21 liquidity boost occurred.
Liquidity Pumps Reversing & Dumping
McGlone further suggests that it may take a decline in equities for rates to fall; citing how liquidity pumps are reversing & dumping – as indicated by Federal funds futures in one year (FF13).
Bitcoin Trading at $27K at Time of Writing
At time of writing, Bitcoin is trading for $27,074 – up 0.7% during the past 24 hours.