Bloomberg Strategist Predicts Potential Bitcoin Price Drop and Market Corrections
Bloomberg strategist Mike McGlone forecasts Bitcoin may drop to $70,000, with its current Bitcoin-to-gold ratio at 28X possibly falling to 21X if the U.S. market corrects. Peter Schiff anticipates a prolonged market downturn. A whale has profited from shorting Bitcoin, and companies like Strategy and BBVA are expanding their Bitcoin-related initiatives.
Mike McGlone, a senior commodity strategist at Bloomberg, has predicted that Bitcoin’s price may drop to $70,000. Currently, the Bitcoin-to-gold ratio, indicating how many ounces of gold are required to purchase one Bitcoin, is 28X. McGlone anticipates this ratio may decrease to 21X, particularly if the U.S. stock market undergoes corrections from its substantial gains of nearly $12 trillion last year.
The market is currently experiencing significant “extreme fear,” despite the U.S. government working toward a Bitcoin reserve. Peter Schiff, a prominent cryptocurrency critic, asserts that the ongoing market correction is overdue and may persist for years, suggesting it represents a long-term transition that could last throughout the decade.
In related developments, a whale who shorted Bitcoin during recent price dips has achieved substantial returns, reportedly shorting Bitcoin at $96,500 and setting profit objectives between $70,000 and $74,000. This strategy positions the investor for more than $7.5 million in unrealized profits.
The company Strategy (formerly MicroStrategy) aims to raise $21 billion through a share issuance to expand its Bitcoin holdings. Additionally, Utah’s legislature has made progress on a bill, HB230, to incorporate Bitcoin into its legal framework, although a crucial section was amended before the bill’s adoption.
Furthermore, BBVA has received authorization from Spain’s securities regulator, CNMV, to facilitate trading in Bitcoin and Ether. Fundstrat’s Tom Lee suggests that Bitcoin may become Wall Street’s most profitable asset as the U.S. approaches the recognition of BTC as part of its financial reserves.
In summary, Mike McGlone’s forecast regarding Bitcoin’s potential decline to $70,000 underscores ongoing market volatility. Coupled with Peter Schiff’s apprehensions about long-term market corrections and notable developments like the advancements in Bitcoin legislation in Utah and BBVA’s trading approval in Spain, these factors collectively delineate a pivotal moment within the cryptocurrency landscape. Stakeholders remain attentive to such market shifts that could profoundly influence Bitcoin’s future.
Original Source: cryptodnes.bg
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