Bitcoin started the year by surging from a low of $16,500 to a high of $30,000 in April 2023. The leading cryptocurrency slipped in May but is holding its ground at the $27,000 level. While stock markets fell due to the US banking crisis, bitcoin and crypto markets have seen a steady upswing. BTC and other leading cryptos delivered better returns than the Nasdaq 100 index list in the first quarter of 2023.
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Source: Coingecko
However, the price surge could soon come to an end, predicted Mike McGlone, senior analyst at Bloomberg Intelligence. The analyst warned that Bitcoin could plunge nearly 75% from its current price, causing bloodshed in the markets. According to McGlone, BTC’s rally may end soon and lead to a downtrend.
Bitcoin: BTC could crash to $7,000 next
Source: Economictimes.com
Mike McGlone stated that Bitcoin has almost quadrupled since the Federal Reserve quickly began printing money during the market slump caused by the Covid-19 lockdown. He explained that liquidity is now drying up as interest rates rise with each announcement.
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Source: Twitter / Mike McGlone
Bitcoin was at $7,000 as markets collapsed due to the crash caused by Covid-19. According to McGlone, there is a chance Bitcoin will start at its 2020 price and lose all gains. Therefore, the analyst predicts that Bitcoin could soon crash to $7,000, down almost 75%. King crypto is currently trading at $27,300.
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“(Bitcoin’s) persistent patterns of uplegs on liquidity and collapses when removed direct our directional bias for bitcoin to respect the 52-week descending moving average.” That the Fed tightens twice despite a bank run could be a testament to the central bank’s persistence. The decline in copper and cryptos seems to heed the warning and in particular contrasts with the resilient stock market.” said McGlone.
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