Bloomberg Senior Analyst Mike McGlone: “Bitcoin Needs to Close Above This Level to Prove Itself”
After a turbulent week in crypto and stock markets, Bitcoin has reportedly rebounded in response to news of a US government funding deal.
Easing lockdown concerns and reports of a potential new stimulus plan aimed at boosting liquidity have raised questions about whether Bitcoin can maintain its momentum or whether a new pullback is imminent.
In the program broadcast on “The Wolf Of All Streets” and hosted by Dave Weisberger (CoinRoutes CEO), James Lavish (CIO & Macro Strategist) and Mike McGlone (Bloomberg Senior Commodity Strategist), macroeconomic factors affecting the markets and the future of Bitcoin were discussed.
Experts believe the recent market volatility stems from the easing of the threat of a US government shutdown. James Lavish and Dave Weisberger predict that once the government reopens, the approximately $150 billion in liquidity sitting in the Treasury General Account (TGA) will begin to flow back into the economy, supporting markets.
Mike McGlone maintained his long-standing cautious stance on Bitcoin, arguing that the asset needs to close above $110,000 to demonstrate its strength. He also noted that traditional commodities like gold are overstretched and could experience a correction.
Dave Weisberger and James Lavish, on the other hand, argue that market sentiment indicators don’t indicate a peak for Bitcoin. They cite data from Grock, noting that social media and other indicators, including the Fear and Greed Index, are overwhelmingly “extremely bearish,” which is unusual for a bull market peak.
Weisberger also adds that Bitcoin’s network power (hash rate) continues to grow steadily and strongly, making it the most important long-term indicator of the eventual demand for Bitcoin.
Experts have stated that Bitcoin has now entered its “distribution phase,” with existing investors who held it since day one able to sell large amounts without depressing the price thanks to increased liquidity. Weisberger believes that the assumption that Bitcoin’s supply is “inelastic” to the price in 2025 proved false, and that there is selling pressure at current levels, but this will subside before the next major price move.
*This is not investment advice.