It seems that there are still some things that need to take place in order for Bitcoin to be able to resurrect. Check out the latest predicitons about this below.
Bitcoin’s revival depends on this factor
According to Bloomberg Intelligence’s senior macro strategist Mike McGlone, Bitcoin’s resurgence is dependent on a crash in risk assets such as stocks.
In an interview with crypto trader Scott Melker, McGlone stated that Bitcoin is unlikely to gain momentum unless the U.S. Federal Reserve increases money circulation.
He noted that Bitcoin tends to perform better when liquidity is high, but underperforms when liquidity is low, as evidenced by its comparison to the Nasdaq index.
He continued and said this:
“Relevant history is more relevant because it’s such a young asset, and the point is that the liquidity pump is clearly off, and it’s way off. I just looked at Fed fund futures – in one year they’re right around 5%. That shows no hope of getting this liquidity pump to go on.”
On the social media platform X, McGlone has shared with his 59,800 followers that if the stock market takes a hit, the Federal Reserve may change its strict stance.
He believes that the current inflation metrics make it unlikely that the Fed will add liquidity soon. However, if there is a decline in the resilient stock market, it could trigger a pivot.
McGlone also points out that Bitcoin has increased by a staggering 26,000 times in 12 years. Even if BTC loses more than 63% of its current value, it would still be one of the best-performing assets.
McGlone suggests that even if Bitcoin drops to $10,000, it would maintain its unprecedented performance. As of writing this, Bitcoin is valued at $27,711 and has risen by over 6% in the last 24 hours.
Stay tuned for more news about the matter and the crypto market in general.
