Pakinomist – Mike McGlone, Chief Commodities Strategist at Bloomberg Intelligence, has published several tweets saying that it is crucial for the world’s leading cryptocurrency, , to stay above the $100,000 level.
At the same time, he expressed a view that the BTC price is likely to continue to rise this year. McGlone also warned about how financial markets could react if Bitcoin falls below the $100,000 level.
“Crypto prices to continue to rise”
McGlone’s tweet states that the main driver behind the recent Bitcoin price pump has been Trump’s election victory in November. He said that while before it happened, the crypto community hoped that the BTC price would rise, that attitude has now changed to “the price has to go higher or else.” This needs to happen, he said, so that Bitcoin avoids “signaling a bubble top and risking active headwinds.”
The Bloomberg Intelligence expert believes that the Bitcoin price will likely continue to rise this year. If the opposite scenario takes place, he said, the stock market could also see a downturn since BTC and stocks are closely related, according to McGlone.
A Bitcoin drop below $100,000 could trigger “deflationary pressures and lower bond yields.” In this case, the Bloomberg strategist added, investors may turn their attention to gold as the traditional store of value and a hedge against falling markets.
