Mike McGlone, the Chief Commodity Strategist at Bloomberg, expects Bitcoin (BTC) to continue shedding value in 2023. In fact, he believes that the apex crypto could even hit a low of $10,000. As per McGlone’s estimates, BTC’s liquidity is likely to remain negative during Q4 2023. As a result, this could bear negative price implications.
McGlone shared his forecast on X (formerly Twitter) and said that “Declining Bitcoin has preceded Fed pivots.”
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.
Also Read: Top 2 Cryptocurrencies To Watch in October 2023
Since January 2023, the original crypto has made gains of over 65%. McGlone takes note of this but says, “It may be a short-covering rally.” Simply put, a short-covering rally is an increase in short prices. As per Bloomberg, BTC continues to face pivotal resistance around the $30,000 threshold.
Bitcoin’s latest pump fueled by whales?
As the market stepped into Q4 2023, BTC made a sudden jump to $28,400, but quickly corrected. According to crypto Analysis firm Santiment, just prior to BTC’s 5.48% jump, a significant amount of BTC moved from exchanges to self-custodial wallets. As per the Analysis firm, a total of four transfers took place between the range of $187 million and $346 million.
The firm also noted that since Sept. 1, the supply of Bitcoin (BTC) on exchanges dropped from 5.99% to 5.73%. The moving of coins from exchanges into wallets is usually considered bullish and points towards the accumula
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