• Bloomberg Analyst Mike McGlone issues warning that Bitcoin (BTC) may have turned too hot within a downtrend
• McGlone says Bitcoin is in a poor technical position and has bounced from too cold in 2022 at around $15,000
• He believes the second half of the year could be ugly for crypto assets and equities as he believes the Federal Reserve is still on the path of increasing interest rates
Bloomberg Analyst Issues Warning
Bloomberg Intelligence’s senior macro strategist Mike McGlone has issued a bearish outlook on Bitcoin (BTC) after its strong performance in the first half of the year. McGlone tells his 58,000 Twitter followers that he thinks Bitcoin is in a poor technical position as it continues to edge downward despite the recent strength in the stock market.
Bitcoin May Have Turned “Too Hot”
McGlone believes that Bitcoin’s rally above $30,000 this year could be seen as an overextended bounce within a macro bear winter. According to him, BTC has bounced from too cold in 2022 at around $15,000 and may have turned too hot in April at about $30,000. He also suggested that it is likely going to respect its down-sloping 52-week mean due to continuing patterns of booms on liquidity and busts when it’s removed.
Federal Reserve Tightening Despite Bank Run
McGlone noted that despite a bank run, The Fed has tightened twice which shows its tenacity. He pointed out that while other markets such as cryptos are slumping, stock markets remain resilient. At time of writing, Bitcoin is trading for $25,849–down over 2% in 24 hours.
Second Half Could Be Ugly
Earlier this month, McGlone said that he believed the second half of 2021 could be ugly for crypto assets and equities since he expects The Federal Reserve to continue with an increase in interest rates.
In conclusion, Bloomberg analyst Mike McGlone has expressed his bearish outlook on Bitcoin (BTC) after its strong performance so far this year and warned that BTC may have turned “too hot”. Additionally, he believes the second half of 2021 could be ugly for crypto assets and equities if The Federal Reserve continues with an increase in interest rates.