Bitcoin Could Drop By More Than 60%, Triggering Accumulation Frenzy

It has been revealed that Bitcoin could drop in price by more than 60%. Check out the latest price predictions about the most important digital asset out there.

At the moment of writing this article, Bitcoin is trading in the green, and the king coin is priced at $27,904.

Mike McGlone, a senior macro strategist at Bloomberg Intelligence, has warned that Bitcoin (BTC) may face a significant price drop of up to 60%.

According to McGlone, the key indicator for BTC is negative liquidity and the rising global rates, despite recession signals.

McGlone predicts that the US will experience a recession by the end of 2023. He believes that Bitcoin’s pivotal resistance level is at $30,000, and warns that the top crypto asset has “risks tilted toward $10,000.”

Additionally, McGlone warns that the crypto sector may face pressure from a stock-market drawdown related to a recession, posing the biggest risk to the industry as a whole.

“Crypto weakness in 3Q (third quarter) may be a recovery blip or a recession leaning. Our bias is the latter, as almost all risk assets gained in 2023 and rolled over into the quarter. Most central banks are still tightening despite contraction signs in the US and Europe, and the property crisis in China, with deflationary implications.”

He continued and stated the following:

“The Bloomberg Galaxy Crypto Index’s (BGCI) relative underperformance may reflect fact changes for an asset class raised on zero interest rates. Spiking US Treasury yields in 1987 topped the week before the crash, while crude’s peak was in July 2008. We see parallels. Bitcoin swoons have preceded Federal Reserve pivots, which may underscore the crypto’s leading indicator attributes and what might be needed to revive liquidity.”

Stay tuned for more news from the crypto space and make sure to check out the latest figures in the crypto market.