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Analyst Renews Crypto Market Fears with Bitcoin $8000 Prediction

Published 31/08/2023, 13:55
© Reuters.  Analyst Renews Crypto Market Fears with Bitcoin $8000 Prediction
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  • Mike McGlone said in an interview that Bitcoin could still drop to $8,000 in this prevailing bear market.
  • The analyst said Bitcoin is still in its infancy and very volatile.
  • McGlone says an ETF approval and influx of institutional investors may not boost Bitcoin’s price.

Mike McGlone, Bloomberg Intelligence Senior Commodity Strategist, in a recent interview, said Bitcoin could still drop to a low of $8,000 amid the prolonged market slowdown.

McGlone noted that despite its recent selloffs, Bitcoin is still the best-performing asset in the history of the world. He continued that the crypto is still in its infancy and very volatile. He compared the volatility with that of the stock market in its early years.

According to him, Bitcoin hasn’t been showing deflationary strength like Treasury bills and gold. Thus, macroeconomic factors still affect the token’s price. He mentioned the Federal Reserve’s ongoing tightening policies as one of the factors affecting Bitcoin’s performance.

However, McGlone reiterated his belief in the long-term bullish potential of Bitcoin. He said the token would eventually get to $200,000 while noting that Bitcoin, at present is a leading indicator for most risky assets.

Recently, the price of Bitcoin surged to $31k following excitements from the Grayscale ETF court case. However, that excitement soon faded, causing the crypto to decline to about $26k.

McGlone stated that while an ETF approval may influence market sentiment, it may not do much to affect the price or kickstart a bull run. He added that, unlike what many think, the earliest ETF may not come until next year. Likewise, the influx of institutional investors, he said, may also not lead to a significant uptick in Bitcoin’s price.

On which ETF could come first, McGlone said BlackRock could likely be the first. He referenced the institution’s status in the market and its position as the leading asset manager in the world.

The current market slowdown has plunged Bitcoin into some of its lowest levels. With the price struggling to recover and trade volumes on a rapid decline, the current performance has the whole crypto market cautious and weary.

Data from CoinMarketCap shows that Bitcoin is changing hands at $27,444 apiece. The current price is the result of a 5.67% increase in the past 24 hours.

The post Analyst Renews Crypto Market Fears with Bitcoin $8000 Prediction appeared first on Coin Edition.

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