Mike McGlone, Bloomberg Intelligence’s senior macro strategist, is doubling down on his $100,000 Bitcoin (BTC) forecast, but says the king crypto could face a major setback along the way.
In a new interview with crypto influencer Scott Melker, McGlone say that he still envisions the king crypto eventually reaching a six-figure price tag, but warns that it could drop to the $20,000 mark along the way.
‘Remember, I called before [a] $100,000 Bitcoin when it was trading below $20,000… I’m still sticking with that in the long run, but I think it’s more likely to drop 50% and get to $20,000, even hitting a new low before it goes on that trajectory.
In support of his forecast, McGlone points to Treasury bills paying more than 5% and the Federal Reserve’s ongoing monetary tightening policy.
“When I see things like, can I get five and a quarter in a Treasury bill? Finished.
I look at the Case-Shiller index or the House index. It was just almost at the highest level ever, just like in 2006, up 20%. Now it is down 1%. That is collapsing.
I look at the Fed still tightening and the last thing that usually always goes down is the stock market, just look at your history.
The Case-Shiller Index is designed to track changes in real estate prices across the country. The index reached its all-time high in June last year and has been popular since.
McGlone goes on to say that due to the macroeconomic environment, BTC may not be able to initiate a bull run.
“I would like to be bullish [on] Bitcoin, but if you look at that $30,000 price now, the first time it traded (at) $30,000 was in late 2020, early 2021. So it’s unchanged.
And if you look at the NASDAQ over the same period, it’s up 20%, but the volatility in NASDAQ is half that of Bitcoin.
So right now Bitcoin is great. All these ETFs (exchange-traded funds) are coming in. We have the hopium for the ETFs, but the actual performance versus the NASDAQ — which has AI and everything it takes — I consider it [if] I’m disappointed, and I think the problem is that I feel like it [too] a lot of bullishness, but still the macro is very unfavorable. The Fed is still taking out the punch bowl.
Bitcoin is trading at $30,030 at the time of writing, a fractional increase on the day.
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Image generated: Midway through the journey
