Unveiling True Risks Behind Bitcoin’s Surge – Bloomberg Analyst’s Take
The optimism surrounding Bitcoin (BTC), the first digital currency, is being tempered by market realities affecting this emerging asset class.
Bitcoin’s mainstream popularity has led to lessons from other highly hyped assets, indicating that price reversals are a significant risk for the cryptocurrency, particularly as more people invest.
McGlone drew parallels between Bitcoin’s trajectory and Amazon’s, which saw gradual 130-fold growth over 25 years. Bitcoin’s performance should hold if price consolidation persists.
McGlone also noted Bitcoin’s viability even if it drops to $10,000 in the near term.
The future of Bitcoin’s growth hinges on developments like potential spot Exchange Traded Fund (ETF) approvals, which could revitalize its price. BlackRock and Fidelity Investments are vying for their spot BTC ETFs, but SEC approval is uncertain.
Industry experts remain cautious about the likelihood of a Bitcoin ETF approval.