Bloomberg Analyst: If This Happens, Bitcoin Price Will Crash!

Senior Bloomberg analyst Mike McGlone remains bullish on Bitcoin. However, he says that if a scenario he shared happens, the Bitcoin price and the crypto market will ‘take a toll’.

‘Bitcoin price will fall hard if this happens’

The seasoned analyst remains optimistic as the Bitcoin price fluctuates and the altcoin market recovers. In a recent Stansberry Research interview, he said that as BTC increasingly becomes a “global digital collateral”, he’s “very bullish” about Bitcoin and altcoins. But the Bloomberg strategist says the macro landscape and the stock market will affect the growth potential of cryptocurrencies.

In the Stansberry Research interview, in the bearish scenario, “I am totally bullish on the Bitcoin, Ethereum, altcoin market, in the big picture. But he sees it as a potential bear market in equities. I am very worried about the market pullback.”

McGlone later said, “This is why I see Bitcoin as the global digital collateral in the world. Every risk manager, day in and day out, they all know ‘You have to take a piece of it’.”

“If the stock market goes down, so will Bitcoin”

McGlone also says that he is concerned that if the stock market goes down, Bitcoin and altcoins may also fall in the short term:

I’m still worried about the sharp fall in the stock market. I mean, I expect a full 20% drop in the S&P 500, and if I wait for that, I expect the coins to take a hit.

McGlone predicts that Bitcoin will eventually reach its long-term price target of $100,000. However, he says that Bitcoin’s performance still largely depends on the price action of the stock market.

Here’s the main difference I want to point out: Bitcoin ‘digital gold’ will do better, it should continue to outperform most (other cryptocurrencies)… But I’m afraid Bitcoin could be under $20,000, around $20,000 pressure. At some point it will go over $100,000. It just needs to see how we’re going to get over this carpet strife in the stock market.

Bitcoin whales on the move again, signaling a new rally?

In line with McGlone’s short-term bearish expectation, the whales began to abandon their positions once the BTC price reached $30,000. However, recently, it has been observed that whales have started to show interest in accumulating BTC again.

According to data provided by Santiment, addresses holding between 100 and 10,000 BTC have added a total of 64,094 BTC to their stacks since April 11, during the slight dip and fluctuation of prices. Due to the high interest in BTC from whales, the BTC supply value per whale reached a steady figure of 5,350 BTC/Whale.

According to Glasssnode’s data, the number of addresses holding 0.01 coins has reached the ATH level. This shows that individual investors continue to have faith in BTC.

Additionally, it should be noted that the mining difficulty has now reached the ATH level of 209 zettahas. Mining difficulty refers to the computational effort required to mine a block. It increases over time and makes it harder for miners to verify transactions and earn rewards. In this article, we have included the historically recorded price movements of this metric on Kriptokoin.com.