Mike McGlone, Bloomberg Intelligence’s senior macro strategist, is expressing bearish sentiment on Bitcoin (BTC) and other crypto assets.
In a new Blockworks Macro interview, McGlone say that he sees the purse fall off a cliff.
According to the macro analyst, most altcoins are likely to experience a severe correction after a stock market decline, with Bitcoin printing a new bear market bottom.
“My base scenario is [the S&P 500 index] goes to 3,000, Bitcoin goes down, I don’t know how far. It could be a new low.
Cryptos will fall very hard. We are going to clean some of these 24,000 cryptos. Get rid of what. They’re just stupid.
But Bitcoin, Ethereum will come first.
So my base case scenario is that’s going to happen, S&P 500 goes to 3,000. The yields are very disappointing.”
According to McGlone, the downturn is likely to continue for months.
“Next year will be more sustainable. That just goes on…
You have to get through this extended period of a severe, I would say asset purge. That’s my base case.”
McGlone also says that even if the stock market doesn’t plummet, Bitcoin is unlikely to outperform other assets.
“If we don’t go down in the stock market, I don’t fully expect Bitcoin to do better in that case. So there is a kind of win-win situation.
But that would be a bit strange I think. And historically it will prove that ‘Oh so the rules and laws of liquidity, and pumps and dumps, and cycles and markets’ may no longer apply. I would be a little concerned about that.”
Bitcoin is trading at $26,837 at the time of writing.
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