It has been just revealed the fact that Bitcoin is going to suffer in case of an economic fall. Check out the latest reports about this below.
Bitcoin to suffer in case of economic downturn
According to senior macro strategist Mike McGlone from Bloomberg Intelligence, Bitcoin (BTC) is indicating a bearish trend in the short term. McGlone highlights that while other high-risk investments are on the rise,
Bitcoin is not following suit. He believes that if there is an economic downturn, Bitcoin will suffer along with other investments.
McGlone also emphasizes the need for Bitcoin to demonstrate strength that is divergent from the stock market and similar to treasury bonds and gold in a deflationary environment.
However, Bitcoin’s recent trend has not been moving in that direction. It reached its peak at the end of Q1, around $31,000, due to optimism and ETFs.
Since then, it has fallen back to around $25,000 to $26,000, and its current trend is showing weakness compared to the stock market’s growth.
McGlone believes that Bitcoin will continue its recent decline due to an “economic reset,” but ultimately reach a value of $100,000.
If a normal deflationary recession occurs, along with a decrease in housing and stock market values similar to 2008, the liquidity from the system will also decrease, causing Bitcoin to serve as a leading indicator for most risk assets.
Currently, Bitcoin has already dropped from its peak of $31,000 and is continuing to trend downwards.
Bitcoin in the news
Pantera Capital, a venture capital firm specializing in digital assets, has stated that Bitcoin (BTC) may reach a six-figure price.
The firm’s founder and other executives co-authored a report predicting that Bitcoin could rally by approximately 32% from its current level before the next halving.
Following that, Bitcoin would need to rally by over 450% to reach the peak of the next bullish cycle, according to Pantera Capital. Check out our previous article in order to learn more details.
