Will Bitcoin Price Dip Below 10K? Bloomberg Analyst Predicts Economic Slowdown

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Bloomberg analyst Mike McGlone has expressed concerns about the global economy, forecasting a severe economic slowdown akin to the Great Depression of 1929. McGlone’s assessment revolves around multiple factors. He draws parallels between the current economic climate and the onset of the Great Depression. As economies grapple with challenges like recessions, contraction projections, and ongoing geopolitical tensions, McGlone’s analysis suggests an impending global economic reset.

The analyst also delved into the topic of Bitcoin, stating, “The issue with Bitcoin is that it’s still in its infancy; it exhibits the highest volatility in the space. While I acknowledge the broader perspective and concur with the potential decline, envisioning it as a global digital gold, the present hitch is that it stands out as the best-performing asset in world history. The driving force behind this asset’s remarkable performance is digital gold and the zero interest rate environment.”

He went on to say, “We’re in the era of digitization. This transformation propelled Bitcoin to its current status. Even if it were to drop to ten thousand, it would still arguably remain the most exceptional performing asset to date. This, to me, presents a dilemma.”

McGlone particularly emphasized the unparalleled infusion of liquidity into markets during the pandemic, which he views as a precursor to the existing economic instability. McGlone meticulously examines economic indicators such as mortgage rates, new home construction, and existing home sales. These indicators, as per his analysis, augur a potential crisis waiting to unfold.

Drawing from historical events like the Great Depression and the market crash of 1929, McGlone draws parallels with the present situation. He observes that major stock indices continue to hover near peak levels despite economic turbulence, raising apprehensions about a substantial correction. This concern is further underscored by the fact that the S&P 500 remains relatively elevated when compared to historical recession corrections.