Important Trigger Could Create Headwinds for BTC, Bloomberg Analyst Says

It has been just revealed the fact that a Bloomberg analyst said that there is an important trigger that could create headwinds for Bitcoin. Check out the latest reports about this below.

According to Bloomberg Intelligence’s senior macro strategist, Mike McGlone, Bitcoin (BTC) may face significant challenges this year.

He has cautioned his 58,800 Twitter followers that an economic recession may be looming in the US, which could negatively impact Bitcoin and other cryptos.

“Notably Negative Liquidity vs. Bouncing Bitcoin – Recessions typically portend struggling risk assets and lower interest rates as central banks add liquidity. Cryptos are tops in risk, with Bitcoin the smallest worry. It’s unlikely the US will avoid economic contraction by year-end, according to Bloomberg Economics, but futures show the Fed more inclined to keep hiking.”

He continued and said the following:

“Respecting the rules of liquidity, which was notably negative at the end of 1H (first half of the year), our bias is the long-anticipated recession will add typical headwinds, particularly to cryptos and stocks that bounced.”

According to McGlone, Bitcoin could follow a pattern similar to gold’s performance during the 2008 Great Recession. Gold initially experienced a 30% decline before eventually rallying.

“The graphic shows Bitcoin’s upward trajectory facing a first – the NY Fed’s probability of recession from the yield curve at its greatest since 1982. That gold dropped about 30% from its peak in 2008 before rallying may have implications for its digital descendent in 2H (second half of the year).”

Reports indicate that a significant amount of bitcoin, approximately 9,800, that was associated with Silk Road has been transferred.

This is believed to be the largest movement of funds related to the now-defunct darknet marketplace in months.

The transfer involves 8,200 bitcoin being moved to new wallets. The remaining funds are being sent to change wallets, and there is a debate as to whether this officially counts as a transfer since they may be returned to their original wallets under different addresses.

In the first transaction, 0.01 BTC is being sent to the wallet 361yog, while 506 BTC is being sent to a change address. These funds come primarily from two wallets.

The second transaction involves sending 8,200 BTC to the 361yog wallet, and 1,118 BTC to a separate change address. These funds originally came from the same wallet.