Bloomberg Intelligence’s senior macro strategist Mike McGlone is expressing bearish sentiment on Bitcoin (BTC) and other crypto assets.
In a new Blockworks Macro interview, McGlone says that he sees the stock market falling off a cliff.
According to the macro analyst, most altcoins will likely witness a severe correction following a drop in the stock market, with Bitcoin printing a new bear market bottom.
“My base case is [the S&P 500 index] is going to 3,000, Bitcoin’s going to go down, I don’t know how far. It might make a new low.
Cryptos will go down real hard. We’re going to purge some of these 24,000 cryptos. Get rid of some. They’re just silly.
But Bitcoin, Ethereum will come out ahead.
So my base case is that’s going to happen, S&P 500 goes to 3,000. Yields drop a lot.”
According to McGlone, the downturn is likely to last for months.
“Next year will be more enduring. It will just continue that…
You have to get through this enduring period of a severe, I would say, purge of assets. That’s my base case.”
McGlone also says that even if the stock market fails to plummet, Bitcoin is unlikely to outperform other assets.
“If we don’t go down the stock market, I don’t fully expect Bitcoin to outperform in that case. So there’s kind of a win-win.
But that would be kind of strange, I think. And historically it will prove that ‘Oh, so the rules and laws of liquidity, and pumps and dumps, and cycles and markets’ may no longer apply. I’d be kind of concerned about that.”
Bitcoin is trading at $26,837 at time of writing.
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