Bitcoin’s dynamic price movements have once again caught the attention of investors and analysts. In recent updates, Bloomberg’s chief commodity strategist Mike McGlone has provided insights into why Bitcoin’s price has experienced a significant reversal, plummeting from its recent all-time high of $108,268 to a current value of approximately $93,000.
Has Bitcoin/Gold Peaked?
The ongoing debate about whether Bitcoin and gold have reached their peak continues to stir discussions in financial circles. According to McGlone, the current retreat in Bitcoin’s value is not an isolated incident but part of a broader trend affecting various risk assets, including gold. Bitcoin, known for its heightened volatility, has been particularly impacted. McGlone describes this downturn as a “normal reversion,” highlighting the inherent risks associated with digital currencies. Currently, Bitcoin is trading at $93,260, marking a decline of over 2% in the last 24 hours and a notable 14% drop over the past week from the $108,300 level.
Market Crash Ahead?
Renowned author of “Rich Dad Poor Dad,” Robert Kiyosaki, has expressed concerns over a potential global economic downturn. In a recent statement, Kiyosaki suggested that a worldwide financial crisis might be looming, advising individuals to be prudent with their finances and secure their income sources. Despite economic uncertainties, Kiyosaki remains optimistic about the enduring value of gold, silver, and Bitcoin. He emphasizes that market crashes can present lucrative opportunities for those who are prepared. “I plan on getting richer. I want you to get richer and smarter too,” Kiyosaki remarked, encouraging his followers to capitalize on these challenging times.
BTC Crash Concerns
A recent analysis from The Kobeissi Letter has raised alarms about a potential drop in Bitcoin’s value by $20,000 in the upcoming weeks. The report highlights Bitcoin’s correlation with the global monetary supply, suggesting that if this trend continues, a substantial dip could be imminent. This forecast arises amidst increased market volatility, with Bitcoin recently falling below the significant $100K threshold. Historical data indicates that Bitcoin prices often follow global money supply trends with a lag of about 10 weeks. As the global money supply hit a new record of $108.5 trillion in October, Bitcoin’s value also peaked at $108,000. However, recent months have seen a shift in this trend, raising concerns about Bitcoin’s price stability.
Another notable figure in the crypto market, Rekt Capital, has observed a “Bearish Engulfing Candlestick formation” in Bitcoin’s performance, signaling bearish momentum. The expert pointed out that Bitcoin has lost its weekly support, concluding a 5-week technical uptrend. Given these developments, there is a potential for a multi-week correction in Bitcoin’s value. Nonetheless, institutional interest in Bitcoin remains robust, with companies like Matador and MicroStrategy continuing their Bitcoin acquisition strategies, indicating confidence in the cryptocurrency’s long-term potential.
