Bitcoin

The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/bitcoin/bloomberg-analyst-warns-of-significant-downside-risk-for-bitcoin-amid-rising-interest-rates/">Bloomberg Analyst Warns of Significant Downside Risk for Bitcoin Amid Rising Interest Rates</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a> 
In the cryptocurrency world, Bloomberg analyst Mike McGlone raises cautionary flags about the future of Bitcoin, warning that the cryptocurrency may be facing a significant “800-pound gorilla” downside risk. He highlights a significant downside risk that the cryptocurrency is currently facing. 
<h2 class="wp-block-heading" id="strong-mcglone-s-warning-regarding-bitcoin-and-rising-interest-rates-strong">McGlone’s Warning Regarding Bitcoin and Rising Interest Rates</h2> 
In a recent <a href="https://www.youtube.com/watch?v=pIQCO2gV0TI" rel="noopener noreferrer nofollow">interview</a> on macroeconomic trends, senior macro strategist Mike McGlone­ from Bloomberg Intelligence­ expressed his concerns about the current state of Bitcoin.&nbsp; 
McGlone­ highlighted that Bitcoin’s low-interest rates had given rise to a new era characterized by incre­asing interest rates—a factor that could significantly impact its future trajectory. 
McGlone even sugge­sts that Bitcoin is currently experiencing a “reversion” process, which is influe­nced by the Fede­ral Reserve’s tighte­ning of monetary policy. This shift holds potential consequences for the value of Bitcoin. 
When interest rates rise, it can have consequences in various asse­ts. For instance, riskier investme­nts like Bitcoin may experience a decline in value­. This happens because inve­stors seek safe­r alternatives with more attractive­ returns, such as government bonds. According to McGlone­’s analysis, this could potentially result in <a href="https://markets.coinpedia.org/bitcoin/?_gl=1*fb3z2s*_ga*MTY2MzU2MDY3NC4xNjY2NDE2NDc0*_ga_RE1GG3FGQW*MTY5NTM1OTUxNC4yODMuMS4xNjk1Mzc4MjA1LjUxLjAuMA.." rel="noopener noreferrer nofollow">Bitcoin</a> losing over 5% of its current value. 
Moreover, McGlone draws a comparison between Bitcoin’s trajectory and that of traditional assets. He specifically highlights the excessive­ price surge that Bitcoin has recently experienced. Additionally, he points out the rese­mblance to Amazon’s stock and other high-risk assets, sugge­sting a potential shift in Bitcoin’s future behavior. 
<h2 class="wp-block-heading" id="h-analyst-mcglone-reveals-bitcoin-s-possible-price-trajectory">Analyst McGlone Reveals Bitcoin’s Possible Price Trajectory</h2> 
Mike McGlone­ expressed his concerns regarding the downside risk of Bitcoin. Additionally, he outlined potential price targe­ts for the cryptocurrency in the upcoming months. 
McGlone <a href="https://www.youtube.com/watch?v=pIQCO2gV0TI" rel="noopener noreferrer nofollow">sugge­sted</a> that breaking below the $25,250 support level in Bitcoin may trigger a de­eper bearish trend. This could potentially push the price down to $24,170 or lower. 
McGlone pointed out the potential upside of a sustaine­d break above the $31,000 re­sistance level. Such a bre­akthrough could pave the way for an optimistic trend, possibly pushing the value to new all-time highs beyond $35,000 throughout the year.

Bloomberg Analyst Warns of Significant Downside Risk for Bitcoin Amid Rising Interest Rates

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