Bloomberg Strategist Reveals Real Risk for Bitcoin (BTC)
The bullish expectations for Bitcoin (BTC), the world’s first digital currency are becoming difficult to meet as market realities are now dawning on the nascent asset class.
Bitcoin (BTC) Risk as Spotted by Expert
Commenting on real risk impacting the performance of Bitcoin, Bloomberg Intelligence Senior Macro Strategist, Mike McGlone said the ‘It Went Up, So Will Keep Going Up’ risks in Bitcoin might be placing the premier coin under undue pressure.
Since the asset went mainstream, the Strategist noted that there have been “lessons of high-performing, widely hyped assets show price reversion may be the greater risk” for the cryptocurrency now that many members of the public are jumping on board.
'It Went Up, So Will Keep Going Up' Risks in Bitcoin –
The lessons of high-performing, widely hyped assets show price reversion may be the greater risk once the masses jump on board. #Bitcoin at about $26,000 on Aug. 28 is slightly below the end of 2020, similar to… pic.twitter.com/3UdAbpLNLe— Mike McGlone (@mikemcglone11) August 28, 2023
The Bitcoin asset has been the delight of many investors which cuts across both institutional and retail buyers. The hype about digital currency was intensified when Bitcoin tested its All-Time High (ATH) above $69,000 back in November 2021. Since the asset enticed new investors, its performance has waned but with growing expectations, leaving many assets trusting another bull market to run to new highs.
McGlone likened Bitcoin’s performance implications to the top e-commerce stock, Amazon which recorded a largely sparing growth of about 25 years to print a 130x performance. According to McGlone, if the consolidation in the price of Bitcoin is sustained, the coin will still maintain its performance rating.
The Strategist also noted that Bitcoin will still maintain its profitability if the price slips to $10,000 in the near term.
The Bitcoin Growth Strategy
Bitcoin is tagged as the most decentralized cryptocurrency without a centralized entity governing the direction of its growth. However, the future push for the premier asset is hinged on some products wrapped around it including spot Exchange Traded Fund (ETF) products that many are envisaging will be approved by the US Securities and Exchange Commission (SEC).
Though the likes of BlackRock and Fidelity Investments are in the race to get their own spot BTC ETF approved, the SEC has a boatload of applications underway already. Should this product be approved, experts are projecting that it might go a long way toward rebooting the price of the digital currency.
In all, the odds of a Bitcoin ETF approval are low according to top industry experts.
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