Known for his cryptocurrency insights, Mike McGlone, the lead commodity strategist at Bloomberg Intelligence, recently warned investors about an impending drop in Bitcoin (BTC) and altcoins. Here’s the catastrophic scenario the macro expert proposes for the crypto market.
Bitcoin and Altcoins Are “Big Draws” Warning
During a recent interview with Blockworks Macro, McGlone stated that he anticipates the US stock markets are on the brink of a precipice, and are likely to plummet soon. According to the macro expert, most altcoins, and even Bitcoin, are likely to face substantial value losses following a downturn in the US markets. Bitcoin might even hit a new low in the bear market:
My basic scenario is that the S&P 500 index will retreat to 3,000, and Bitcoin will fall. I don’t know how far it will drop. It could reach a new low. I’m really expecting Bitcoin and altcoins to drop sharply. This situation will probably lead to a partial liquidation of the 24,000 cryptocurrencies. We will get rid of some of them because some are simply ridiculous. Bitcoin and Ethereum will come out on top. That’s my basic scenario.
Predicting that the downturn could persist for months, McGlone added, “It’s going to be a sustained drop until next year. This will continue. Investors have to get through this period of substantial asset liquidation. That’s my basic assumption.”
Bitcoin Not Expected to Perform Well Even If the Stock Market Doesn’t Fall
The commodity strategist also stated that even if the US stock markets do not decline, Bitcoin’s chances of performing better than other assets do not seem feasible:
If the US stock markets don’t drop as I expect, I don’t foresee Bitcoin performing better. So there’s a kind of win-win situation. But I think that would be a bit strange. In the past, it was like, ‘So the rules and laws of liquidity, pump and dumps, cycles, and markets’ may no longer apply. I’m a bit concerned about that.
