Key Points:
- Bloomberg’s Mike McGlone predicts a potential drop in Bitcoin’s price to $10,000.
- Robert Kiyosaki recommends accumulating Bitcoin, gold, silver, and cash due to a forthcoming CBDC.
- Financial experts debate the significance of Bitcoin’s resistance at $30,000.
Mike McGlone, the chief commodity strategist at Bloomberg Intelligence, has taken to the X social media platform (formerly known as Twitter) to express his belief that Bitcoin may experience a significant decline this year, possibly plummeting to as low as $10,000.
“Potential for a Prolonged Crypto Downturn”
McGlone contends that as the fourth quarter commences, the liquidity outlook for the world’s leading cryptocurrency, Bitcoin, appears to be negative, which could have implications for its price.
The chart shared by McGlone depicts a downward trajectory in Bitcoin’s price, mirroring the one-year federal funds futures (FF13). He added, “As we come of age in a zero interest-rate environment, the crypto market may face a prolonged downturn, despite rising global interest rates and recession signals.”
In a previous statement on the X app in September, McGlone mentioned that as long as this indicator remains above 5%, the likelihood of liquidity easing from the Federal Reserve remains limited. If the index begins to rise, it could impact all risk assets, including Bitcoin.
In his most recent X post, the strategist pointed out that despite recent gains in Bitcoin and other risk assets, this could merely be a temporary rally. According to McGlone, $30,000 now stands as a critical resistance level for Bitcoin, with the risk skewed towards a drop to $10,000.
Declining Bitcoin Has Preceded #Fed Pivots –
The bottom line for #Bitcoin at the start of 4Q may be that liquidity remains negative, with price implications. Coming of age in a zero interest-rate world, the #crypto hangover could be enduring as global rates continue to rise,… pic.twitter.com/Nrn8lMaYzo— Mike McGlone (@mikemcglone11) October 3, 2023
Renowned Bitcoin advocate and author of the popular personal finance book “Rich Dad Poor Dad,” Robert Kiyosaki, recently provided another compelling reason to consider investing in Bitcoin, as well as gold, silver, and even cash. However, he often refers to cash as “trash,” echoing the well-known saying “cash is trash.”
Kiyosaki tweeted that he anticipates the U.S. Federal Reserve to issue a Central Bank Digital Currency (CBDC) in the near future. According to Kiyosaki, this development will enable the Fed to continuously monitor user spending habits. This move has raised concerns similar to those expressed about China’s digital yuan by many prominent figures in the world of finance and cryptocurrency.
Kiyosaki believes that once Fed Coin enters the market, assets such as gold, silver, Bitcoin, and even cash will become invaluable. Therefore, he recommends his Twitter followers start accumulating these assets as soon as possible.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.
