Bloomberg Expert Says Bitcoin $30k Resistance May Plunge BTC to $10k

Bloomberg analyst warns of Bitcoin’s (BTC) potential plunge to $10,000 as negative liquidity and rising interest rates threaten its price.

In the last 24 hours, Bitcoin has retraced to its $27K passive trading zone after briefly breaking a two-month high of over $28,400. Amid the unsavory price performance, a top analyst at Bloomberg Intelligence argued that Bitcoin could fall to as low as $10,000 before the year ends. 

In particular, Mike McGlone, a Senior Macro Strategist at Bloomberg Intelligence, expressed the sentiment while sharing insight on the current state of Bitcoin as the market enters the fourth quarter of the year.

According to McGlone, “the bottom line for Bitcoin at the start of 4Q may be that liquidity remains negative, with price implications.”

Declining Bitcoin Has Preceded #Fed Pivots –
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,… pic.twitter.com/Nrn8lMaYzo

— Mike McGlone (@mikemcglone11) October 3, 2023

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Bitcoin Liquidity Is Negative

Notably, the negative Bitcoin liquidity indicator implies the presence of more sellers of Bitcoin than buyers. The Bloomberg analyst believes the situation poses a significant threat to the current price of Bitcoin.

Moreover, McGlone pointed out that Bitcoin attained mainstream adoption at a time when interest rates were low. As a result, he argued the crypto market could grapple with a lasting hangover as global interest rates rise. He noted the possibility, regardless of signals of an impending recession. 

Furthermore, the chart accompanying McGlone’s tweet sought to illustrate the historical pattern of FED fund futures preceding liquidity reversals. According to the chart, Bitcoin might need to experience a decline to align with the FED fund futures.

Meanwhile, McGlone highlighted the US Federal Reserve may not directly concern itself with Bitcoin. However, he mentioned that Bitcoin’s status as a 24/7-traded asset and leading indicator could be gaining importance in the financial world.

Bitcoin Falling to $10k

Besides, the analyst noted that Bitcoin has seen substantial gains alongside other risk assets in 2023.

Yet, he cautioned that this could be “a short-covering rally.” Ultimately, McGlone stated that the $30,000 level remains a crucial resistance point for Bitcoin, with the risk skewed towards a potential drop to $10,000.

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• Source: https://thecryptobasic.com/2023/10/03/bloomberg-expert-says-bitcoin-30k-resistance-may-plunge-btc-to-10k/?utm_source=rss&utm_medium=rss&utm_campaign=bloomberg-expert-says-bitcoin-30k-resistance-may-plunge-btc-to-10k