Bloomberg Analyst Issues Bitcoin Alert, Says BTC Correction Is ‘Telling Us Something’ – Here’s His Outlook
Bloomberg Intelligence senior macro strategist Mike McGlone just issued an alert to investors, warning that Bitcoin’s (BTC) latest correction may hint at what’s coming next.
McGlone tells his 60,000 followers on the social media platform X that crypto’s rise to prominence in a time of zero interest rates could spell trouble for the nascent industry as loose monetary policies rapidly reverse.
According to McGlone, Bitcoin’s drop in price despite the renewed potential for future exchange-traded funds (ETFs) may signal a liquidity crisis is coming.
“ZIRP (zero interest rate policy) in reverse – cryptos in the middle and Bitcoin tilting down. Cryptos came of age during an unprecedented period of zero-interest-rate policies that [are] reversing rapidly, with implications for prices.
Down about 15% in 3Q to September 6th despite US spot ETFs moving closer to approval and a buoyant stock market, Bitcoin may be telling us something. The 24/7 traded crypto might be a leading indicator for a severe economic reset worthy of the extraordinary pump – and then dump – in liquidity.”
Last month, a judge ruled that the U.S. Securities and Exchange Commission (SEC) must reconsider its position on approving crypto firm Grayscale’s application to create a BTC ETF to remain consistent.
McGlone’s data covers Bitcoin’s appreciation from $1 to its all-time high of $69,000 amid a period of low interest rates and therefore it “may be logical” for the top crypto asset by market to revert in price during times of rising rates.
“It may be logical for a revolutionary digital asset/currency that came of age during an unprecedented period of zero and negative interest rates to revert some when rates rise… Bitcoin’s relative weakness may be following the path of least resistance on the back of rapidly rising rates.
Federal funds futures priced for about 5.45% in November compared with the average of 0.6% from 2011-21, when Bitcoin appreciated from $1 to the peak of about $69,000.”
Bitcoin is trading at $26,226 at time of writing, a 1.9% increase in the last 24 hours.
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