Bloomberg Macro Strategist Mike McGlone say so They believe that the pressure of the coming recession will may cause Bitcoin BTC/USD To retest the $20,000 level.
one in do On Friday, McGlone warned that bitcoin’s recent rally above $31,000 is running against a powerful headwind.
“Bitcoin $20,000 or $40,000? Facing the Fed, the recession, the Nasdaq – the possible launch of a US ETF will not save bitcoin from facing its first US recession, a potential equity bear market and cautious central banks. Risk-off assets versus negative liquidity and lessons from the economic contraction,” he said.
At the time of writing, bitcoin was trading at $30,698, up 16% over the past seven days.
McGlone said as liquidity continued to drain from the market, several central banks outside the US raised interest rates this month.
“Bitcoin’s main pivot point has been around $30,000 since 2021, when most risk-on assets appreciated due to the largest money-supply increase in history. “Liquidity pulls still in play, with most central banks continuing to tighten in June, which could be a headwind, even as risk assets bounce back on expectations of a mild US recession and Fed easing,” he said. has come.”
McGlone said that bitcoin, which has recently lagged behind the gains of the Nasdaq 100 stock index, may have peaked. They said federal funds futures in one year (FF13) show little potential to fuel additional liquidity.
On recession, the macro strategist warned that there are economic signs that a recession could be coming within a few months.
Earlier this month, McGlone said that the worst is yet to come for bitcoin, predicting a liquidity crunch in the second half of 2023 due to a possible US recession.
Meanwhile, another top crypto analyst believes that bitcoin may have more room to run once it crosses the $30,000 level.
one in do On Friday, analyst willy woo It states that bitcoin could rise by more than 30% from its current price of $30,555 before the top digital asset becomes more bought.
He added that the cryptocurrency’s latest surge was likely caused by veteran traders hoarding bitcoin after its price dropped to around $25,000 last week. Wu said that BTC could surpass the $40,000 level as an extension of its current rally.