Bitcoin recently hit a one-year high of $31,400, a price previously seen before the May 2022 Terra-LUNA crisis, which sparked a series of troubles for the crypto market. Despite some experts predicting a bullish run for BTC, Bloomberg Intelligence’s senior strategist, Mike McGlone, cautions that numerous headwinds could impede the cryptocurrency’s advance to $40,000.
McGlone argues that while several Bitcoin ETFs, such as the BlackRock spot Bitcoin ETF, may help support the market, they will not completely protect BTC from potential US recession, a possible equity bear market, and hawkish central banks. According to him, the near-term outlook for Bitcoin is positive, but the critical pivot point has remained close to $30,000 since 2021 amidst the most significant money supply surge in history.
Additionally, McGlone warns that the US Federal Reserve’s planned interest rate hikes this year, weak US dollar liquidity, and the Nasdaq 100 stock index nearing its peak pose major obstacles to Bitcoin’s possible rally. He adds that even with risk assets bouncing back amid hopes for a mild US recession and easing by the Fed, central bank tightening in June could still be a headwind for the cryptocurrency market.
The founder of Cubic Analytics, Caleb Franzen, largely supports McGlone’s analysis and points out the significant zone of resistance for Bitcoin between $31,000 and $35,000. Furthermore, CoinGape Media reported that the Bitcoin CME gap between $34,455 and $35,180 is about to close, and over 145k BTC options with a notional value of $4.5 billion are set to expire on June 30. Despite these occurrences, analysts remain bullish on the BTC price due to its overall near-term technical advantage.
However, it’s essential to approach investments in cryptocurrencies with caution, as these assets are subject to market conditions and inherent risks. Consequently, thorough market research is vital before making any financial decisions, and the opinions expressed by experts such as McGlone and Franzen should not be taken as outright guarantees. Ultimately, personal financial loss remains the responsibility of the individual when participating in the crypto market.
Source: Coingape
