Bitcoin (BTC) and other digital currencies have recently reached record-breaking lows, making the cryptocurrency market very turbulent. Analysts and investors predict the market’s future, but more precise predictions are needed for accuracy.
However, Mike McGlone, a senior macro strategist at Bloomberg Intelligence, has offered his distinctive viewpoint on the present trend. He says that in order for risk assets to recover, Bitcoin may need to cross the $25,000 threshold.
McGlone recently tweeted that if the stock market and cryptocurrency lows hold, tactical shorts of Bitcoin and other cryptocurrencies may be justifiable toward the beginning of March. McGlone noted monetary policy’s unpredictable lag and the zero Fed funds rate a year prior.
The community has strongly reacted to his comments, with one person stating that “bulls are about to get rekt.” On the other hand, some questioned why he didn’t emphasize worldwide liquidity when discussing BTC.
McGlone has already made predictions about Bitcoin. Just a week prior, he issued a warning that headwinds were still present and that the markets had recovered, stressing that “Don’t fight the Fed” will continue to be the critical headwind for markets in 2022 and the first quarter.
He added that Bitcoin’s $25,000 resistance level might be significant for all risk assets. Given the enormous volatility in the cryptocurrency market, McGlone’s singular insights may be crucial for investors looking to make wise choices. The cryptocurrency community will closely watch McGlone’s predictions as Bitcoin and other cryptocurrencies experience ups and downs.
Bitcoin Drops Below $22,500 Support Area
BTC’s price has experienced an unheard-of and noticeable decrease for the last several hours. Bitcoin’s value dropped by $1,300 in an hour, dipping below $22,000, a critical support level. Several cryptocurrency community members are attributing the market decline to the uncertainty surrounding Silvergate bank.
The financial institution provides liquidity to the Bitcoin market, acting as a conduit to the fiat money system. The ambiguity encircling Silvergate may have initiated the apprehensive selling that caused the price decline.
In addition to the previously mentioned uncertainty over Silvergate, Coinglass reported liquidations of over $240 million today, of which $1.77 million was in bitcoin. Futures Open Interest grew in Feb, leading to the liquidation of mostly long positions, accounting for nearly 90%.
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Due to the selling pressure, the bears drove the stock below the $22,500 support area. However, Bitcoin is currently down 6.08% on the weekly chart and 4.26% in the last 24 hours, trading at $22,381.29.
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing
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