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.
According to Mike McGlone, a Senior Macro Strategist at Bloomberg Intelligence, the assumption that past growth guarantees continuous upward movement may be stressing Bitcoin’s value.
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.
Bitcoin’s appeal spans both institutional and individual investors. After reaching an ATH above $69,000 in Nov 2021, its performance waned, but many are hopeful for another bull market.
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.
READ MORE: Crypto Analyst Envisions Bold Moves for Bitcoin and Ethereum: A Bullish Tale Unfolds
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.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
