Get Ready For Incoming Market Turbulence, Says Bloomberg Strategist

It seems that we should be getting ready for some pretty rough crypto market turbulence, according to a Bloomberg strategist. Check out the latest reports about this below.

According to Bloomberg Intelligence senior macro strategist Mike McGlone, recent Bitcoin price movements suggest that economic turbulence may be on the horizon.

In a post on social media platform X, McGlone pointed out that Bitcoin is displaying bearish divergence when compared to the Nasdaq 100 Stock Index, which could be a sign of an upcoming recession.

He also noted that Bitcoin has dropped by around 15% in the third quarter of 2021, while the Nasdaq 100 Stock Index has gained 2%.

McGlone believes that weakness in the cryptocurrency could be a precursor to a market downturn during a recession or simply a sign of falling behind.

He has a bias towards the former, particularly when considering the low-interest rates that have propelled risk assets to their current levels since the financial crisis.

According to the expert, the federal funds futures rate indicates that the Fed will increase interest rates further. Additionally, Bitcoin’s performance in relation to Japan’s Nikkei 225 index is a cause for concern for the expert, who has a bearish outlook on the cryptocurrency.

The analyst questions whether Bitcoin is following the Nikkei or if it will recover, like the Nikkei did in June. The expert advises caution due to Bitcoin’s downward trend and suggests that regaining the $31,000 price level would be a positive sign.

However, he believes that BTC will continue to decline as central banks, including the Fed, are tightening. At the time of writing, Bitcoin is trading at $25,746, down 0.1% in the last 24 hours.

The person who accurately predicted the lowest price of Bitcoin during the 2018 bear market is certain that the cryptocurrency will surpass this year’s highest price.

In a recent video that he shared with his 224,500 followers on X, a social media platform, analyst Bluntz states that BTC may undergo some corrective movements before regaining its bullish momentum.