• Bloomberg Intelligence’s Mike McGlone predicts that Bitcoin (BTC) may drop lower due to recessionary headwinds and a liquidity crunch in the second half of 2023.
• He believes that markets have bounced recently, but their strength is not sustainable, predicting a continued downward trend.
• McGlone warns that an expected US recession could push BTC much lower than its current price.
Mike McGlone’s Prediction on Bitcoin (BTC)
Bloomberg Intelligence’s senior macro strategist Mike McGlone has predicted that Bitcoin (BTC) will drop lower due to recessionary headwinds and a liquidity crunch in the second half of 2023. He believes that markets have bounced recently, but their strength is not sustainable, predicting a continued downward trend. McGlone also warns that an expected US recession could push BTC much lower than its current price.
Rising Risk Assets and Bitcoin
June may show more of the 1H bias for rising risk assets and Bitcoin in a worst-is-over scenario or it could roll over into a US recession according to McGlone. He states that his bias is towards the latter as markets appear to have priced in an optimistic outcome from central-bank rate hikes which are still rising.
Lessons of Liquidity Pumps
McGlone mentions the lessons of liquidity pumps which reverse and are still dumping, as indicated by Federal funds futures in one year (FF13). He suggests it may take a decline in equities for rates to fall which will affect risk assets like BTC accordingly.
Bitcoin’s High In 2023
The Bloomberg analyst believes that Bitcoin’s high of about $30,000 in 2023 vs the 100-week mean around $33,000 may show the pre-eminent, 24/7 globally traded risk indicator feeling gravity from the comfort zone around $7,000 before 2020-21 liquidity boost.
Expected US Recession
McGlone states that an expected US recession has not yet started which may pressure risk assets such as Bitcoin significantly. He predicts this could cause BTC prices to drop much lower than its current price if this occurs.