Bloomberg’s chief commodities analyst has lately projected a persisting ‘crypto hangover,’ based on his observations of a worrying pattern in the cryptocurrency market, which he expects will last into the fourth quarter of 2023.
As Mike McGlone stated in an October 3 X post, past trends suggest that Bitcoin (BTC) may need to fail first in order “for Fed[eral] support futures in one year (FF13) to trough and show that liquidity is being switched back on.”
Even if the Federal Reserve probably doesn’t give a hoot about the first cryptocurrency, “declining Bitcoin has preceded Fed pivots,” and “its 24/7-traded, leading-indicator status could be gaining traction.” Just like McGlone stated:
“At the beginning of the fourth quarter, it may be that negative liquidity has a significant impact on the value of Bitcoin. Crypto investors who came of age in a world with zero interest rates may have trouble recovering if global rates continue to increase, despite signs of a recession.”
Finbold stated on October 2 that a finance expert had earlier noted that cryptocurrencies were struggling with the prospect of a recession and that the third quarter’s downturn in the crypto field might be a temporary rebound stumble or a more alarming warning of an imminent recession.
At the time of publication, the going rate for Bitcoin was $27,578. The most current data is from October 4 and shows an increase of 0.42 percent in the past 24 hours, a rise of 2.8 percent over the previous seven days, and a rise of 6.5 percent over the course of the month.
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