{"id":30553,"date":"2023-10-04T20:52:37","date_gmt":"2023-10-05T00:52:37","guid":{"rendered":"https:\/\/cryptocornercafe.com\/cafe\/?p=30553"},"modified":"2023-10-04T20:52:37","modified_gmt":"2023-10-05T00:52:37","slug":"will-bitcoin-price-crash-to-10000-bloomberg-expert-reveals-when","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2023\/10\/04\/will-bitcoin-price-crash-to-10000-bloomberg-expert-reveals-when\/","title":{"rendered":"Will Bitcoin Price Crash To $10,000? Bloomberg Expert Reveals When"},"content":{"rendered":"

Many analysts have weighed on the potential trajectory<\/a> of the flagship cryptocurrency, Bitcoin. This time, Bloomberg<\/a> analyst Mike McGlone has highlighted<\/a> the possibility of Bitcoin price declining further and when this could happen.<\/p>\n

Bitcoin Price Could Decline Further<\/h2>\n

In a tweet<\/a> on his X (formerly Twitter) platform, McGlone noted that Bitcoin risks declining to $10,000 (which could happen by year-end) as it continues to battle the $30,000 resistance level<\/a>.\u00a0<\/p>\n

This resistance level has long been touted as the key to a sustained breakout in Bitcoin\u2019s price<\/a>. However, going by the analysis that McGlone shared, the odds seem to be against this happening.\u00a0<\/p>\n

Bitcoin<\/a> has risen significantly in 2023, considering that the crypto asset traded at around $16,000 at the beginning of the year. But, McGlone warned that this may be a \u201cshort-covering rally.\u201d<\/p>\n

As part of this analysis, he noted that liquidity in the Bitcoin ecosystem remained negative heading into the fourth quarter. This ultimately means there is more selling pressure than buying pressure, which could affect Bitcoin\u2019s price.\u00a0<\/p>\n

Another factor is the rising interest rates. McGlone noted that Bitcoin gained prominence in a \u201czero interest-rate world\u201d with greater financial freedom. But now, Bitcoin (alongside other cryptocurrencies)<\/a> might continue to endure a hangover as \u201cglobal rates continue to rise.\u201d\u00a0<\/p>\n

Global inflation<\/a> is said to be on the rise, and to curb it, authorities are raising interest rates, which could restrict spending and, by extension, the liquidity that goes into the crypto market.\u00a0<\/p>\n

Meanwhile, the analysis noted Bitcoin\u2019s importance in the grand scheme of things. Bloomberg Intelligence drew a correlation between the FED fund futures and Bitcoin\u2019s price. According to projections, Bitcoin needs to decline further before there can be a liquidity reversal in those funds.\u00a0<\/p>\n

While the Federal Reserve<\/a> may not care about Bitcoin, he stated that Bitcoin\u2019s \u201c24\/7-traded, leading indicator status could be gaining traction.\u201d<\/p>\n\n

The Fate Of The Broader Crypto Market<\/h2>\n

In another tweet<\/a>, McGlone noted that cryptocurrencies \u201cmight be leaning into recession.\u201d To drive home this point, he highlighted the relation between the crypto and stock market<\/a> and stated that the latter could succumb to an \u201cebbing tide\u201d suppose the stock market were to experience a \u201ctypical drawdown\u201d due to a recession.\u00a0<\/p>\n

Despite the \u201cbroader on-and-of-again fluctuations,\u201d this projection is said to be reflected in the \u201cdownward trajectory\u201d of the Bloomberg Galaxy Crypto Index<\/a> (BGCI) and Russell 2000 Index<\/a> (RTY) from their all-time highs in 2022. Both markets have remained tepid and continue to consolidate as they anticipate a \u201ccatalyst\u201d that could spark a price surge.\u00a0<\/p>\n

This analysis is similar to that of crypto analyst Nicholas Merten, who, while drawing out the direct relation between both markets, noted<\/a> that if the stocks of big tech companies like Apple and Microsoft don\u2019t start picking up, there could be a \u201creally big problem\u201d for the crypto market.\u00a0<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

Many analysts have weighed on the potential trajectory<\/a> of the flagship cryptocurrency, Bitcoin. This time, Bloomberg<\/a> analyst Mike McGlone has highlighted<\/a> the possibility of Bitcoin price declining further and when this could happen.<\/p>\n

Bitcoin Price Could Decline Further<\/h2>\n

In a tweet<\/a> on his X (formerly Twitter) platform, McGlone noted that Bitcoin risks declining to $10,000 (which could happen by year-end) as it continues to battle the $30,000 resistance level<\/a>.\u00a0<\/p>\n

This resistance level has long been touted as the key to a sustained breakout in Bitcoin\u2019s price<\/a>. However, going by the analysis that McGlone shared, the odds seem to be against this happening.\u00a0<\/p>\n

Bitcoin<\/a> has risen significantly in 2023, considering that the crypto asset traded at around $16,000 at the beginning of the year. But, McGlone warned that this may be a \u201cshort-covering rally.\u201d<\/p>\n

As part of this analysis, he noted that liquidity in the Bitcoin ecosystem remained negative heading into the fourth quarter. This ultimately means there is more selling pressure than buying pressure, which could affect Bitcoin\u2019s price.\u00a0<\/p>\n

Another factor is the rising interest rates. McGlone noted that Bitcoin gained prominence in a \u201czero interest-rate world\u201d with greater financial freedom. But now, Bitcoin (alongside other cryptocurrencies)<\/a> might continue to endure a hangover as \u201cglobal rates continue to rise.\u201d\u00a0<\/p>\n

Global inflation<\/a> is said to be on the rise, and to curb it, authorities are raising interest rates, which could restrict spending and, by extension, the liquidity that goes into the crypto market.\u00a0<\/p>\n

Meanwhile, the analysis noted Bitcoin\u2019s importance in the grand scheme of things. Bloomberg Intelligence drew a correlation between the FED fund futures and Bitcoin\u2019s price. According to projections, Bitcoin needs to decline further before there can be a liquidity reversal in those funds.\u00a0<\/p>\n

While the Federal Reserve<\/a> may not care about Bitcoin, he stated that Bitcoin\u2019s \u201c24\/7-traded, leading indicator status could be gaining traction.\u201d<\/p>\n

The Fate Of The Broader Crypto Market<\/h2>\n

In another tweet<\/a>, McGlone noted that cryptocurrencies \u201cmight be leaning into recession.\u201d To drive home this point, he highlighted the relation between the crypto and stock market<\/a> and stated that the latter could succumb to an \u201cebbing tide\u201d suppose the stock market were to experience a \u201ctypical drawdown\u201d due to a recession.\u00a0<\/p>\n

Despite the \u201cbroader on-and-of-again fluctuations,\u201d this projection is said to be reflected in the \u201cdownward trajectory\u201d of the Bloomberg Galaxy Crypto Index<\/a> (BGCI) and Russell 2000 Index<\/a> (RTY) from their all-time highs in 2022. Both markets have remained tepid and continue to consolidate as they anticipate a \u201ccatalyst\u201d that could spark a price surge.\u00a0<\/p>\n

This analysis is similar to that of crypto analyst Nicholas Merten, who, while drawing out the direct relation between both markets, noted<\/a> that if the stocks of big tech companies like Apple and Microsoft don\u2019t start picking up, there could be a \u201creally big problem\u201d for the crypto market.\u00a0<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-30553","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/30553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=30553"}],"version-history":[{"count":0,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/30553\/revisions"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=30553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=30553"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=30553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}