• Bloomberg’s Mike McGlone warns that Bitcoin’s latest rally above $31,000 is running up against a powerful headwind of recessionary pressures.
• He believes that liquidity is continuing to drain out of the markets and most central banks are tightening in June.
• Pseudonymous analyst Pentoshi predicts Bitcoin will soon print new 2023 highs at the $32,453 level.
Mike McGlone Warns of Recessionary Headwind for Bitcoin
Bloomberg Intelligence’s senior macro strategist Mike McGlone has issued a warning that Bitcoin’s (BTC) latest rally above $31,000 is running up against a powerful headwind of recessionary pressures. He believes that liquidity is continuing to drain out of the markets with many central banks outside of the US increasing interest rates this month. McGlone believes that rallying stocks may have reached a near-term peak with no sign of increasing market liquidity and predicts BlackRock’s spot Bitcoin ETF application will not receive approval in 2023 due to economic signals indicating a recession will arrive within months.
Bitcoin ETF Application Impact on BTC Price
News surrounding BlackRock’s spot Bitcoin ETF application coincided with Bitcoin’s latest rally, however it is not likely to receive approval in 2023 according to McGlone. Despite this, he still believes physical exchange-traded funds (ETF) in the US are only a matter of time as it appears to have expedited the process.
Pentoshi’s Bullish Outlook on BTC Price
Despite warnings from Bloomberg’s senior macro strategist Mike McGlone about potential headwinds for Bitcoin (BTC), pseudonymous analyst Pentoshi has taken a more bullish view and predicts Bitcoin is likely to soon print new 2023 highs at the $32,453 level.
Risk Assets vs Negative Liquidity and Economic Contraction
McGlone suggests risk assets have appreciated on back of biggest money-supply surge ever seen but now liquidity rug-pull appears to be happening as central banks continue to tighten in June which could be a headwind even though risk assets have bounced on hopes for mild US recession and easing by Federal Reserve (Fed).
Conclusion
Although there are potential economic risks ahead for Bitcoin (BTC) such as recessionary pressures and tightening central bank policies, there are also some reasons for optimism such as news surrounding BlackRock’s spot ETF application which appears to have expedited process towards physical exchange traded funds in US and pseudonymous analyst Pentoshi’s prediction about printing new 2023 highs at $32,453 level soon.