The world of cryptocurrency has been on a wild ride lately, with Bitcoin (BTC) and other digital currencies experiencing unprecedented lows.
Investors and analysts alike have been scrambling to predict where the market is headed, but many of these predictions have been going awry.
However, Bloomberg Intelligence Senior Macro Strategist Mike McGlone has shared his insights into the current trend, suggesting that Bitcoin may need to breach the $25,000 mark for risk-asset revival.
In a recent tweet, McGlone stated:
just in case the crypto and stock market lows aren’t in, tactical Bitcoin/crypto shorts could be warranted at the start of March.
McGlone went on to suggest that monetary policy acted with a long, variable lag and pointed out that just a year ago, the Fed funds rate was zero.
His comments have generated a strong response from the community, with one individual warning that “bulls are about to be rekt,” while others asked why he didn’t talk about global liquidity when discussing BTC.
This is not the first time that McGlone has made predictions about the future of Bitcoin. Just one week ago, he suggested that headwinds remained strong and that the markets had bounced, warning that “Don’t fight the Fed” was the dominant headwind for markets in 2022 and would remain so in the first quarter.
He also suggested that the $25,000 resistance level for Bitcoin could prove significant for all risk assets. Nevertheless, with the crypto market currently experiencing significant fluctuations, McGlone’s insights into the market may prove crucial for investors looking to make informed decisions.
As BTC and other cryptocurrencies continue to experience ups and downs, the community will be watching closely to see whether McGlone’s predictions come to fruition.
Bitcoin Price Crashes by $1,200 Within Hours
BTC has experienced a sudden and severe price crash in the last few hours. The price of Bitcoin plummeted by nearly $1,300 in just an hour, briefly falling below the crucial $22,000 support level. Many in the crypto community are attributing the crash to the uncertainty surrounding Silvergate bank.
The bank is a significant player in providing liquidity to the Bitcoin market by acting as a gateway to the fiat money system. The recent uncertainty surrounding Silvergate may have sparked the panic selling that led to the price drop.
In addition to the uncertainty surrounding Silvergate, over $240 million in liquidations were recorded today from which $1.77 million was in BTC, according to Coinglass. Over 90% of the liquidations were long due to a build-up of Futures Open Interest that continued to increase throughout February.
As a result of the selling pressure, the bears pushed the price below the $22,500 support zone. However, Bitcoin is currently trading at $22,381.29, with a 4.26% loss in the last 24 hours and a 6.08% on the weekly chart.