Prominent Bloomberg analyst, Mike McGlone, recently released his June Crypto Outlook report, expressing skepticism about Bitcoin‘s price journey and forecasting potential downfall for the flagship cryptocurrency and the entire crypto market in the coming months. McGlone’s bearish outlook for Bitcoin is based on several factors that could contribute to its decline, suggesting that the worst may not be over.
The report indicates that the crypto market may face its first recession in the United States, a possible bear market for equities, banks steering away from crypto post-FTX, and high interest rate competition. These factors, according to McGlone, could potentially hamper the future prospects of Bitcoin and other major altcoins dominating the crypto sector.
McGlone’s analysis also highlights the speculative excesses of the “biggest liquidity pump in history” leading up to the 2021 peak as a significant risk factor. He believes that the risks for the Bloomberg Galaxy Crypto Index are presently weighted negative, with plunging commodities, producer prices, and bank deposits signaling potential deflationary indications and a lag in the Federal Reserve’s tightening measures.
An interesting observation from McGlone’s market analysis is the unusual weakening of Bitcoin, Copper, and equities in China compared to the stalwart Nasdaq 100 Stock Index. Moreover, the fact that Nasdaq’s performance alone could uplift the entire market contrasts with the rising expectations of a Fed rate hike.
These factors lead McGlone to conclude that Bitcoin, despite its strength, may be too young to outperform traditional safe-haven assets like gold in the event of a US economic contraction. This bearish forecast challenges the optimism surrounding Bitcoin’s recovery and raises important questions about the cryptocurrency’s future trajectory.
As the crypto market continues to navigate this complex landscape, it remains to be seen whether McGlone’s analysis will prove accurate or if Bitcoin will defy the odds and regain its bullish momentum. At the time of writing, Bitcoin’s price is currently exchanging hands at $27,091.79, representing a gain of 0.13% over the past hour compared to an increase of 0.37% over the last 24 hours.
In such a volatile market, it is crucial for investors to conduct their market research before investing in cryptocurrencies. The predictions and opinions presented in the report are subject to change based on market conditions, and the author or the publication does not hold any responsibility for personal financial loss.
Source: Coingape
