Mike McGlone is expressing bearish sentiment towards Bitcoin (BTC). McGlone is the senior macro strategist of Bloomberg Intelligence, a research arm of the global media company Bloomberg.
Strategist predicts a crisis, falling stocks and a Bitcoin crash
In a Blockworks Macro Interview McGlone predicts a significant drop in the stock market. The crisis that Mike McGlone refers to has to do with the ever-rising inflation, government debt and banks that collapse. Problems in the stock market will also translate into major corrections in the altcoin market, he says. According to the macro strategist, most altcoins, of which there are now 24,000, will not make it and disappear. Mike had this to say about that:
“A purge of the huge number of existing cryptocurrencies is necessary, most altcoins are stupid.”
Bitcoin and Ethereum (ETH) can also expect a decline with even a new market bottom, according to Mike McGlone. The frontrunners in the crypto market will come out on top compared to other altcoins.
What does a market bottom mean for the crypto market?
If the predictions of a market bottom are true, it means we can expect a Bitcoin price below $16,000. This is a 40% drop from its current price, which is at $26,898. For Ethereum, that could see a drop of almost 50% to a price around $900.
A crisis can also be positive for Bitcoin
Although a crisis for bank runs and financial panic can cause there are also sounds in the crypto world that this can be positive for the crypto market, and then specifically Bitcoin. As a decentralized store of value, Bitcoin has been positioning itself for years hedge against fiat currencies such as the euro and dollar. As a result, problems in the current banking sector could also cause an increase in the demand for Bitcoin. We also saw this happen recently when Silicon Valley Bank and First Republic Bank got into trouble.