Bloomberg Intelligence senior macro strategist Mike McGlone predicts that Bitcoin (BTC) could fall to levels last seen in July 2020.
McGlone says that Bitcoin could fall by 39% from the current price and revisit the $10,000 support level over the coming weeks.
[adinserter block="1"]The macro strategist says that the crypto selloff witnessed this week has underlined the headwinds facing risk assets going forward.
“The breakdown of Bitcoin and crypto assets may trigger capitulation sell stops in most markets that have been under pressure this year.
The great risk-asset reversion of 2022 has become clear as of November 9, but it’s the remaining trading sessions that may set the stage for 2023, with Bitcoin – one of the fastest horses in the race, and top leading indicator – breaching support and risks revisiting $10,000 support.”
Bitcoin is trading at $16,362 at time of writing, down by about 20% from this month’s high of $21,480 reached last week.
According to the Bloomberg Intelligence senior macro strategist, the impact of the FTX crypto exchange’s collapse and the resulting reputational damage of its founder and CEO Sam Bankman-Fried might be bigger on the macroeconomic landscape.
“The loss of confidence from FTX’s downfall and its leader, Sam Bankman-Fried, is a shock to cryptos, but the macroeconomic dominoes may be more significant.”
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