The cryptocurrency market is known for its volatility, and recent fluctuations in Bitcoin’s price have caught the attention of investors worldwide. Mike McGlone, Bloomberg’s Chief Commodity Strategist, has provided insights into the recent price reversal of Bitcoin, which saw it dip significantly from its all-time high of $108,268 to its current level of $93,000.
Has Bitcoin/Gold Peaked?
According to McGlone, the current downturn in Bitcoin prices extends beyond the cryptocurrency itself, affecting gold and other risk assets as well. Bitcoin, being highly volatile, has experienced the most significant impact. McGlone described this major drawdown as a “normal reversion,” with Bitcoin trading at approximately $93,260, marking a decline of over 2% in just one day. Over the past week, Bitcoin’s value has plummeted by around 14%, falling sharply from the $108,300 level.
Potential Market Crash on the Horizon?
The renowned author of “Rich Dad Poor Dad,” Robert Kiyosaki, has also weighed in on the situation, suggesting that a global economic and financial market crash might be underway. In a recent message, he advised his followers to be prudent with their finances and to maintain their employment and income streams during these uncertain times. Kiyosaki emphasized that assets like gold, silver, and Bitcoin tend to retain their value, even amid economic downturns. He highlighted that market crashes often present opportunities for wealth accumulation, stating, “I plan on getting richer. I want you to get richer and smarter too.”
Concerns Over a BTC Crash
Adding to the cautious sentiment, a report from The Kobeissi Letter has projected a potential BTC crash of $20,000 in the coming weeks. The report draws a correlation between Bitcoin’s price movements and the global monetary supply. Should this pattern continue, a significant dip in Bitcoin’s value could be imminent. This prediction emerges amidst elevated market volatility, with Bitcoin recently slipping below the critical $100,000 threshold.
Historically, Bitcoin prices have mirrored global money supply trends with an approximate 10-week delay. As the global money supply reached a record $108.5 trillion in October, Bitcoin prices peaked at $108,000. Yet, over the past two months, there has been a noticeable shift.
In addition, Rekt Capital, a well-known crypto market expert, has observed a “Bearish Engulfing Candlestick formation” in Bitcoin’s price chart, indicating bearish momentum. He further pointed out that Bitcoin has lost its weekly support and the 5-week technical uptrend has ended, suggesting a possible multi-week correction ahead.
Despite these concerns, institutional interest in Bitcoin remains robust. Companies like Matador and MicroStrategy continue to invest heavily in Bitcoin, demonstrating confidence in its long-term potential.
