BlackRock Spot BTC ETF Filing May Cause Bitcoin Price Crash To $20,000, Says Bloomberg Analyst
In spite of BlackRock’s recent application for a Bitcoin exchange-traded fund (ETF) driving up BTC’s price, Bloomberg’s senior macro analyst Mike McGlone has warned that BTC’s price may fall lower.
McGlone noted the various hurdles Bitcoin might meet in the current monthly report issued on Friday, including a stock bear market and the careful eye of central banks.
He stressed that the cryptocurrency would still be vulnerable to the aforementioned dangers even after the introduction of Bitcoin ETFs in the United States. While he agrees that physical Bitcoin ETFs will eventually become available in the United States, he warns that the application filed by BlackRock may not result in an actual launch in 2023.
In our opinion, Bitcoin exchange-traded funds (ETFs) that physically store Bitcoin in the United States are inevitable. McGlone echoed the thoughts of Eric Balchunas, a senior ETF analyst at Bloomberg, who said that BlackRock’s application to create such a fund sped up the process, although a launch may not happen in 2023.
McGlone also said that the possibility of an economic slump in the coming months would further cloud Bitcoin’s prognosis. A prominent analyst has predicted that Bitcoin’s price would settle closer to the $20,000 support level than the $40,000 resistance level, citing the correlation between risk-asset performance, negative liquidity, and economic contraction.
Recent advances in the Nasdaq 100 Stock Index may have peaked, and our chart shows Bitcoin lagging behind them. He added that next year, there needs to be more room for expansion in the FF13 Federal Funds Futures market.
McGlone’s findings are timely, coming as they do only days after the Federal Reserve said it would cease raising interest rates following a string of 10 straight rises over just 15 short months. Investors breathed easier with the Fed’s response to falling inflation. Because of this dramatic improvement in the markets, Bitcoin was able to surpass the $30,000 level once again.
Despite the Fed’s decision to pause rate rises, McGlone predicts that the “liquidity rug-pull” would continue in June, with most central banks continuing to tighten, adding more resistance to risk assets. Despite McGlone’s warnings, many believe Bitcoin has already hit bottom and is about to enter a bull market.
Ali Martinez, a well-known crypto expert, predicted on Friday that the price would rise to $35,000 since there were no significant impediments.
Major supply bottlenecks only arise at the $35,000 threshold. Therefore, Bitcoin is in for a smooth ride. On the other side, he stated that BTC has necessary support between $29,260 and $30,200 and between $26,500 and $27,400.
At the time of writing, the price of a bitcoin was $30,385, down 2.74 percent from the previous day. The leading cryptocurrency had a remarkable increase of 15.23% during the previous week.
Also Read: High court has decided in favour of Coinbase, sending the user action to arbitration
