Bloomberg Senior Analyst Mike McGlone: “Bitcoin needs to close above this level to prove its worth.”
After a turbulent week in the cryptocurrency and stock markets, Bitcoin has reportedly rebounded in price in response to news of a US government funding deal.
The easing of lockdown measures and reports of a possible new economic stimulus plan aimed at increasing liquidity have raised questions about whether Bitcoin can maintain its momentum or whether another pullback is inevitable.
Hosted by Dave Weisberger (CEO of CoinRoutes), James Lavish (CIO and macro strategist), and Mike McGlone (senior commodity strategist at Bloomberg), “The Wolf of All Streets” discussed the macroeconomic factors impacting markets and the future of Bitcoin.
Experts believe the recent market volatility is linked to the easing threat of a US government shutdown. James Lavish and Dave Weisberger predict that once the government reopens, approximately $150 billion in liquidity held in the Treasury General Account (TGA) will begin to flow back into the economy, supporting markets.
Mike McGlone maintained his long-standing cautious stance on Bitcoin, stating that the asset must close above $110,000 to demonstrate its strength. He also noted that traditional commodities like gold are overbought and could be subject to a correction.
On the other hand, Dave Weisberger and James Lavish argue that market sentiment indicators don't indicate that Bitcoin has peaked. They cite Grock data, noting that social media and other indicators, including the Fear and Greed Index, are overwhelmingly “extremely bearish,” which is unusual for a bull market peak.
Weisberger also adds that the Bitcoin network's computing power (hash rate) continues to grow steadily and steadily, making it a key long-term indicator of potential demand for Bitcoin.
Experts have stated that Bitcoin has entered a “distribution phase,” with existing investors who have held it since its inception able to sell large volumes without depressing the price thanks to increased liquidity. Weisberger believes that the assumption that Bitcoin's supply is “inelastic” to the price in 2025 has proven false, and that selling pressure is present at current levels, but will subside before the next major price move.
Source: cryptonews.net
