Cryptocurrency analyst predicts bitcoin will fall below $ 25,000

Bloomberg senior strategist Mike McGlone said in an interview with Understanding Macro that bitcoin is facing problems due to the tightening of the US Central Bank’s monetary policy. According to him, BTC $94,375.18 Bitcoin -0.02% Market capitalization $1.87 trillion VOL. 24 hours $3.09 billion is «in the process of reversal,» which could result in a drop in the value of the asset by more than 5% compared to the current level.

A further decline in the value of the Cryptocurrency will mean that the rate of the market flagship will fall below $ 25,000. According to the analyst, this could also trigger an outflow of funds from other assets. Following the meeting on September 20, the US Central Bank did not raise the rate, leaving it at the highest level since 2001: 5.25−5.5% per annum.

McGlone noted that «the pumping up of the bitcoin price was excessive». He compared this scenario to the behavior of Amazon shares, emphasizing that this was observed in all risky assets. The analyst believes that at some point, the BTC rate will reverse and the asset will be traded like gold and Treasury bonds.

Matrixport analysts hold a different view, expecting BTC to rise to $ 37,000 by the end of this year. According to the researchers, the last quarter of the year is considered to be a rather successful period for the flagship cryptocurrency from a historical point of view. If we evaluate the dynamics of bitcoin over the past 9 years, the digital asset gained 35% on average in the fourth quarter of the year.

Earlier, cryptocurrency analyst Michael van de Poppe shared his analysis of the market situation ahead of the next Fed meeting. The expert emphasized that he would closely monitor Jerome Powell’s rhetoric. «Do what you want, but the bull is on the horizon. We have only four to six weeks to go, and then we will only go up,» the expert said in late August.