Mike McGlone, a senior Bloomberg strategist, predicts Bitcoin (BTC) may tumble before reaching a six-figure price in the coming months.
McGlone predicts that the flagship cryptocurrency will likely fall to a critical support level of $30,000 before rallying to a price of $100,000, a 230% gain.
“If you buy it [Bitcoin] at around $41,000, I think, maybe in less than a year, you should expect to go around $100,000.
But at these levels right now, we might easily see $30,000 first. And I fully expect that’s kind of the risk-reward because $30,000 has been the key support.”
According to the senior Bloomberg strategist, Bitcoin is likely to follow markets in a downward trend before reversing.
“If the tide goes out, which I expect in equities, I fully expect Bitcoin to drop with it, gold to continue outperforming. And then Bitcoin and gold to come out ahead.
Now that’s a scenario. Now if I’m wrong, the stock market just keeps going straight up again, Bitcoin will outperform, like it has.”
McGlone believes that while Bitcoin is the highest-quality investment in the crypto asset field, it “needs to be rocked a little bit” before staging a rebound.
“Key thing about cryptos is they are the speculative excess example of the future. They can trade 24/7, 18,000 of them. You know what happened in Shiba Inu and things like those. That’s just silly.
But Bitcoin is the gold in the space. And it’s still speculative. I just really think it needs to be shaken out a little bit and then go back up as a whole market.”
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.