Bitcoin's $60,000 Bottom Unlikely, Bloomberg Strategist Warns of Crash
Bloomberg Intelligence's leading macro strategist, Mike McGlone, is warning that Bitcoin's current price of around $60,000 may not be a bottom, but rather a temporary reprieve.
McGlone notes that the unprecedented liquidity shortage in the crypto market and fierce competition from traditional finance make it unlikely for Bitcoin to hold this level.
The strategist points out that with risk-free U.S. Treasury bonds offering a guaranteed yield of 4.95%, 5.00%, institutional capital sees no reason to hold positions in volatile Bitcoin, which generates no passive income.
Historical reference points suggest that WTI crude oil's downward price path since its first month-end close above $100 a barrel in February 2008 may be a guide for Bitcoin's direction.
The economics of supply and demand are playing out, with a fundamental shift toward a surplus of up to 9 million barrels per day in the U.S. and Canada by 2027.