Bitcoin to Face Major Pressure Factor, Says Bloomberg Analyst

Mike McGlone, who is the senior macro analyst at Bloomberg Intelligence, doesn’t think Bitcoin (BTC) is ready for a bull market.

In a new talk with David Lin, McGlone calls Bitcoin’s price increase since BlackRock’s exchange-traded fund (ETF) application was announced last week “hopium.”

The biggest asset manager in the world, BlackRock, sent an application for a spot Bitcoin ETF to the U.S. Securities and Exchange Commission (SEC) last Thursday.

Even though Grayscale, VanEck, and Cathie Wood’s ARK Invest have all put in for Bitcoin spot ETFs, none have been accepted so far. The SEC did agree that two Bitcoin futures ETFs can start trading in October 2021.

McGlone tells us,

“We have to hope to get that ETF. It’s probably going to happen now because it’s BlackRock. We’re all thinking that… So I’m big picture macro bullish Bitcoin, but I think the problem is if I’m right about risk assets declining in a normal recession, cryptos are the riskiest assets. Bitcoin’s the least risky [of crypto assets], and I think they still have a lot of downside risk based on my view of a serious US recession.

At some point, Bitcoin’s going to come out of that and trade more like gold and long bonds. Is this the time? Maybe, but it’s got to show me more divergent strength.”

At the time this was written, the price of BTC was $29,917. The top crypto asset by market cap is up more than 6% in the last 24 hours and nearly 20% in the last week.