Bloomberg analyst predicts end of massive price swings for Bitcoin (BTC), highlighting possible global economic reset.
After multiple weeks of passive performance, Bitcoin (BTC) has dropped by over 3% in the last 24 hours. This seemingly minute price crash sent the global crypto market into a bleeding trend.
Meanwhile, Mike McGlone, a Senior Macro Strategist at Bloomberg Intelligence, recently weighed in on Bitcoin’s overall dynamic.
Bitcoin Era of Huge Swings Over?
In a tweet, McGlone highlighted that Bitcoin’s era of big price jumps, either positive or negative, is likely over. The Bloomberg analyst particularly stated that BTC’s volatility was declining. According to him, the decline follows a similar pattern as other prominent assets, as so far observed in 2023.
Are Big Bitcoin Pumps Done? Mainstream, Stablecoin Trajectory – #Bitcoin volatility is declining along with most assets in 2023, and the mainstream migration process is likely to entail diminishing risk for the #crypto — and limited price-pump potential. Divergent Bitcoin and… pic.twitter.com/h5EH6EwNiL
— Mike McGlone (@mikemcglone11) August 17, 2023
Furthermore, McGlone mentioned that the decreasing volatility was because Bitcoin has graduated to becoming a more mainstream asset accepted by institutions. The analyst theorized that the situation translates to an era where investors now face less risk in buying and holding BTC.
“The mainstream migration process is likely to entail diminishing risk for the crypto — and limited price-pump potential,” McGlone remarked.
This view implies Bitcoin is now less likely to experience the large price swings which it has been known for in the past. The analyst now sees Bitcoin following a stablecoin trajectory.
Projected BTC Price Fall
Meanwhile, the Bloomberg analyst spotlighted another crucial aspect of Bitcoin’s performance that suggests an incoming significant bearish trend.
McGlone noted that Bitcoin and copper have been moving in opposite directions since the first quarter of the year. He stated that the divergence between Bitcoin and copper spells severe economic drifts, including a global economic reset.
Additionally, the analyst highlighted the weakness observed in China’s economic indicators and the ongoing tightening of monetary policies by central banks.
The implication is that the price of Bitcoin could depress in the coming weeks due to less demand, albeit with mild volatility. At press time, Bitcoin trades at $28,316, with a cumulative 3.75% decline over the past week.
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