Image Credits: Finbold

  • Bloomberg’s Mike McGlone predicts a bull run if Bitcoin surpasses $30,000.
  • Regulatory challenges and ETF approvals are key factors.
  • SEC’s slow ETF response and regulatory uncertainty.

Over the past two years, Bitcoin has seen a series of price fluctuations, occasionally edging towards a bullish trend but failing to sustain it. However, a Bloomberg analyst has now forecast a genuine bull run for BTC, although certain factors and conditions must be considered.

Analyst’s Predictions and Optimism

Investors have been eagerly anticipating a potential bull run in Bitcoin ever since it crashed in 2022, plummeting from $46,000 to under $20,000. The optimism within the crypto community has received a boost with a prediction from Mike McGlone, a senior macro strategist at Bloomberg Intelligence, who suggests the possibility of a Bitcoin bull run.

In a post on X (formerly Twitter), the seasoned analyst suggests that if Bitcoin’s price surpasses the $30,000 mark, investors should brace themselves for a substantial bull run akin to the surge witnessed in 2020 when Bitcoin reached its all-time high.

McGlone compared Bitcoin’s current price of $30,000 to its 2020 value of $12,000, right before it experienced a significant surge. He drew a parallel between the 2020 surge, which occurred when Bitcoin was priced at $12,000, and the bullish momentum he anticipates if Bitcoin surpasses the $30,000 price level.

“Bitcoin $30,000 May Be New $12,000, With Fed-Tightening Overhang,” according to McGlone’s X post.

He mentioned that Bitcoin’s price could experience significant growth if regulatory challenges are resolved and if spot Bitcoin ETFs receive approval.

Read More: Bitcoin Trading Volume Hits Lowest Point in Nearly Five Years

The analyst added “The inevitable approval of Bitcoin ETFs in the US is moving closer, but the elephant in the room for all-risk assets remains. The Fed is still tightening despite the tilt toward economic contraction.”

The crypto community eagerly anticipates a bullish reversal in Bitcoin’s price, but several factors are standing in the way of its expected growth trajectory. Let’s delve into these key obstacles that currently hinder the rise of Bitcoin.

Hindrances to Bitcoin’s Growth

Regulatory Challenges

The recent victory of Grayscale against the SEC in the pursuit of a Bitcoin ETF has sparked optimism. However, it’s important to note that the SEC has previously rejected applications for spot Bitcoin ETFs from prominent financial service firms and crypto exchanges. Even after the District of Columbia Court of Appeals favoured Grayscale’s Bitcoin ETF, the SEC has been slow to embrace the idea, raising concerns among investors.

Regulatory Uncertainty

The SEC’s reluctance is not limited to ETFs. The regulatory environment for cryptocurrencies remains uncertain as the SEC aggressively sues crypto exchanges like Binance and Coinbase. This lack of a clear regulatory framework has a chilling effect on cryptocurrency prices, making investors wary of exchanges entangled in legal battles and potential legal consequences.

Declining Transaction Volume

Bitcoin’s transaction volume has dwindled to three-year lows, plummeting by a staggering 90%. Such a significant decline in transaction activity curtails any potential rally and places Bitcoin in bearish territory. The reduced demand for Bitcoin transactions could be indicative of broader market sentiment.

Mining Challenges

Bitcoin mining, once a lucrative venture, has faced considerable challenges. The decreasing rewards and increasing competition have led to a decline in participation among miners. This has consequences not only for miners but also for the overall security and decentralization of the Bitcoin network.

Bitcoin Chart
Credits: Tradingview

Despite these formidable obstacles, hope still prevails among investors. The crypto community remains optimistic, hoping for a sudden surge in Bitcoin’s price. As the industry continues to evolve and regulators work towards establishing a clear framework, there is a belief that Bitcoin’s potential for growth remains intact.