Mike McGlone, Bloomberg Intelligence’s senior macro strategist, is doubling down on his $100,000 price prediction for Bitcoin (BTC), the largest cryptocurrency by market cap. However, he said the flagship crypto could be set for a major dip.
In a new interview with Scott Melker, a crypto influencer, McGlone said he still envisions a six-figure price for Bitcoin (BTC), but warned it might drop below to $20,000 level before the parabolic trend.
Read Also: Top Analyst Warns of a Bull Trap, States Why He Thinks Current Bitcoin Price Rally Is Unsustainable
Mike McGlone noted:
“Remember, I made the call for $100,000 Bitcoin when it was trading below $20,000… I still stick with that in the long term, but I think it’s more likely to drop 50% and get down to $20,000, even make a new low before it goes on that trajectory.”
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Macroeconomic Environment May Hold Bitcoin (BTC) Down
To back his prediction, the Bloomberg strategist referenced Treasury bills that currently pay over 5% and the continued tightening of monetary policies by the Federal Reserve.
The strategist referenced the Case-Shiller index, a tool designed to track changes in real estate prices across the country, stating that it’s now down 1% compared to eras such as 2006 when it was up 20%.
“When I see things like, I can get five and a quarter in a Treasury bill? Done. I look at the Case-Shiller index or the House index. It just was almost at the highest ever right before like 2006, up 20%. Now it’s down 1%. That’s collapsing. I look at the Fed still tightening and the last thing that always usually falls is the stock market, just look at your history,” McGlone stated.
McGlone continued further stated that Bitcoin (BTC) may fail to ignite a bull run due to the macroeconomic environment.
He said, “I’d love to be bullish on Bitcoin, but if you look at that price right now at $30,000, the first time it traded (at) $30,000 was right at the end of 2020, right the beginning of 2021. So it’s unchanged.”
For further clarification, he said a look at the NASDAQ since 2020 shows that its volatility is half that of Bitcoin. McGlone said although Bitcoin is doing great with loads of ETFs (Exchange-Traded Funds) coming in, he’s still not satisfied when compared to NASDAQ’s performance since 2020.
“So right now, Bitcoin’s great. It’s got all these ETFs coming in. We have the hopium for the ETFs, but the actual performance versus the NASDAQ – which has got AI and everything going for it – I look at it as if I’m disappointed, and I think the problem is I sense way too much bullishness, but yet the macro is very unfavorable. The Fed is still taking away the punch bowl.”
At the time of press, BTC is trading at $29,150, with a relatively 2% price downtrend in the last 24 hours.
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