Bitcoin Day

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Mike McGlone, Bloomberg Intelligence’s senior macro strategist, has a bearish outlook on Bitcoin (BTC) in the short term. In a recent interview with Kitco News, he noted that Bitcoin is displaying bearish signals despite the upward movement of other risky assets.

“If we have this downturn, we can just take money away from everybody, which is kind of a rule in bear markets, Bitcoin will suffer.

The key point is we need to see, at some point, [Bitcoin] to start showing divergent strength where it trades more like treasury bonds and gold in a deflationary environment. And it hasn’t been doing that.

Take a look:

It peaked basically at the end of Q1, got to around $31,000 on this hopium and ETFs [exchange-traded funds], then it dropped back down to $25,000 or around $26,000. Now it’s showing divergent weakness to the stock market going up.”

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McGlone believes that an “economic reset” will likely lead to Bitcoin’s ongoing downward trend, but he anticipates that the leading cryptocurrency will ultimately reach a six-figure price in the future.

“I think, eventually, it’s going to get to $100,000, but if we get the global economic reset I think we’re going to get – we get a normal deflationary recession, housing coming back down, stock market coming back down similar to 2008 but this is actually in some cases worse because we’re still taking liquidity from the system, Bitcoin is a great leading indicator.

And that’s my point. Lately, it’s been kind of leading the way down. It cut up around $31,000, and it’s been tilting back lower. I’m looking at it as a leading indicator for most risk assets.”

As of the time of writing, Bitcoin is currently trading at $26,007.