Bloomberg senior analyst Mike McGlone said bitcoin’s price could experience a period of decline in the second half of 2023 due to rising interest rates in the United States and other countries.
McGlone called the period “bearish” and indicated that he foresees a downturn for the cryptocurrency market. However, the moment will test for bitcoin, which is facing the power of the recession to prove itself as an alternative technology, or even a means of storing value.
It is worth remembering that the price of bitcoin is on an upward trend in 2023, with a 61% increase, quoted this Monday (5) at US$26,740.00.
See what the Bloomberg analyst said about bitcoin’s pessimistic moment in the second half of 2023: “it could be ugly”
Mike McGlone’s analysis is not just about bitcoin and the cryptocurrency market. This is because central banks’ decision to raise interest rates can also affect the stock market and stock markets.
In the first half of 2023, it’s worth remembering that both bitcoin and US equities have proven resilient. Overall, the US stock market turned bullish, offering gains to investors in both crypto and exchanges.
But with successive interest rate hikes, central banks are signaling a coming recession, which could affect the continuity of the hikes. According to Mike McGlone, high-risk assets, such as those in the cryptocurrency market, or stocks, can fall and even “represent a potential loss.”
“Bitcoin May Need Divergent Strength vs. Recession Strength –
The decline in cryptos in the second quarter could be a sign of skepticism that the stock market can sustain its recovery in the first half of the year. Rising stock prices that boost expectations for a rate hike by the Federal Reserve could represent a potential loss.”
#Bitcoin Divergent strength vs. Recession Force –
Falling cryptos in 2Q may be a sign of skepticism that the stock market can sustain its 1H bounce. Rising stock prices supporting expectations of a Federal Reserve rate hike could be a potential lose-lose situation pic.twitter.com/XJrKgD1SN7— Mike McGlone (@mikemcglone11) June 3, 2023
Possibility to buy cheap
Mike McGlone’s analysis, shared last Saturday (3), makes it clear that investors need to be more cautious at this point.
Definitions of which assets are most at risk can put pressure on bitcoin and exchanges. However, if the downtrend is confirmed in the coming months, prepared investors will be able to purchase assets at more attractive prices.
That is, while most investors observe pessimistic analysis biased towards selling, others who believe in fundamentals may be waiting for new contributions.
Either way, the juncture of the global crisis is sounding alarm in major economies, especially when it is determined that the continuity of the war in Ukraine and geopolitical tensions are still on investors’ radars.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
