Senior Bloomberg strategist Mike McGlone believes that Bitcoin (BTC) could crash before hitting a six-figure price in the coming months.
In a new video interview, McGlone says that the flagship cryptocurrency is likely to fall to a key support level of $30,000 before it rallies to a price of $100,000, a gain of 230%.
“If you buy it [Bitcoin] at around $41,000, I think, maybe in less than a year, you should expect to go around $100,000.
But at these levels right now, we might easily see $30,000 first. And I fully expect that’s kind of the risk-reward because $30,000 has been the key support.”
The senior Bloomberg strategist says that he expects Bitcoin to follow stocks in a downward trend before a reversal.
“If the tide goes out, which I expect in equities, I fully expect Bitcoin to drop with it, gold to continue outperforming. And then Bitcoin and gold to come out ahead.
Now that’s a scenario. Now if I’m wrong, the stock market just keeps going straight up again, Bitcoin will outperform, like it has.”
According to McGlone, Bitcoin is the highest quality investment in the crypto asset space but it “needs to be shaken out a little bit” before it can stage a recovery.
“Key thing about cryptos is they are the speculative excess example of the future. They can trade 24/7, 18,000 of them. You know what happened in Shiba Inu and things like those. That’s just silly.
But Bitcoin is the gold in the space. And it’s still speculative. I just really think it needs to be shaken out a little bit and then go back up as a whole market.”