Bloomberg Intelligence analyst Mike McGlone, a well-known Bitcoin supporter, predicts that the price of the king of the market could rise to $100,000 in the long run. However, along the way to that price, Bitcoin could face serious setbacks, McGlone further predicts.
The Bloomberg analyst warns namely for another dip below $20,000 for Bitcoin.
Drop of 50 percent
“Remember when I called for a Bitcoin price of $100,000 when the digital currency was trading below $20,000…I’m sticking with that for the long haul, but I think Bitcoin is more likely to fall 50 percent and fall below $20,000 and possibly even record a new low before heading towards that price,” said McGlone.
In support of his prediction, McGlone points to US Treasury bills, which are currently paying out more than 5 percent. “If I see I can get 5.25 percent on a US Treasury bond? Then I sign immediately,” McGlone continues.
So McGlone mainly points to the macroeconomic climate as a possible reason that Bitcoin cannot produce a new all-time high. The Federal Reserve has been aggressively raising interest rates for the past 15 months and is probably not quite done yet. An increase may also be planned for this week.
Tricky for Bitcoin
For now, McGlone mainly sees bears on the road for Bitcoin. “I would like to be bullish on Bitcoin, but if you look at the current $30,000 price, the first time it traded at this level was at the end of 2020, at the beginning of 2021, it’s unchanged in that respect.
If you look at the Nasdaq over the same period, you see a 20 percent increase, while the volatility in the Nasdaq is half that of Bitcoin,” said a somewhat pessimistic McGlone.
At the time of writing, Bitcoin is ticking in at $29,160 and the bulls seem to be really struggling to regain control. In that respect, McGlone may be right with his predictions and we may have to wait for new all-time highs.
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