Bloomberg’s senior commodity strategist, Mike McGlone, has recently predicted a lingering ‘crypto hangover’ on the cryptocurrency market that will continue through the fourth quarter of 2023. He believes that this is based on historical patterns and that Bitcoin (BTC) must fail as a requirement. McGlone explained, “for Fed[eral] fund futures in one year (FF13) to trough and indicate that liquidity is being turned back on”.
In other words, McGlone noted that “declining Bitcoin has preceded Fed pivots”, and despite the fact that many people are not interested in the first cryptocurrency, its 24/7-traded, leading-indicator status could be gaining traction. He said, “The bottom line for Bitcoin at the start of 4Q may be that liquidity remains negative, with price implications. Coming of age in a zero-interest-rate world, the crypto hangover could be enduring as global rates continue to rise, despite recession signals.”
Earlier, McGlone also pointed out that cryptos were grappling with the specter of a recession and that the third quarter’s weakness in the crypto space could be a sign of the impending recession.
At press time, the price of Bitcoin was $27,578. According to the latest data, the price of the stock has increased by 0.42% over the past 24 hours, and holds onto its gains of 2.88% in the last seven days, and 6.56% on the monthly chart.
McGlone concluded that gains in 2023 will be seen by most risk assets and other investments. He believes that this may be a short-covering rally, but acknowledges that $30,000 remains a pivotal resistance for Bitcoin, with risks tilted toward $10,000, while maintaining his recession forecast in the United States by the end of the year.
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