Cryptocurrency

Bitcoin

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 <p class="paragraph">Following his observations of a concerning trend in the cryptocurrency market, Bloomberg’s senior commodity strategist has more recently predicted a lingering ‘crypto hangover,’ which he believes will continue throughout the fourth quarter of 2023.</p>
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 <p class="paragraph">Specifically, based on historical patterns, Mike McGlone has noted that Bitcoin (BTC) may need to fail first as a prerequisite “for Fed[eral] fund futures in one year (FF13) to trough and indicate that liquidity is being turned back on,” as he explained in an X post shared on October 3.</p>
 <figure class="wp-block-image aligncenter is-resized"><img decoding="async" loading="lazy" src="https://thebittimes.com/image/getimage/?url=https://lh5.googleusercontent.com/EI4c72DqAYBMUnFCKPUwcVhHEnEgy0EQ2rNabR9NBmBsOgCBOxDksgngi_Cgv5iebh5O9qUKa_z5lWXHI_EmKWMf3ilc3ACG6h2j3bvLovLt6ETjK0EXguWwKIaSELXvHY7CGKms4B7EGotAF9GicUs" alt width="700" height="514">
  <figcaption class="wp-element-caption"><em>Bitcoin vs. Federal funds future in one year. Source: </em><em>Bloomberg Intelligence/Mike McGlone</em>
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 <p class="paragraph">In other words, “declining Bitcoin has preceded Fed pivots,” despite the Fed likely not caring about the maiden cryptocurrency, but “its 24/7-traded, leading-indicator status could be gaining traction.” As McGlone specified:</p>
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  <p class="paragraph">“The bottom line for Bitcoin at the start of 4Q may be that liquidity remains negative, with price implications. Coming of age in a zero-interest-rate world, the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> <a rel="noopener noreferrer nofollow" title="hangover" href="https://thebittimes.com/tag/hangover.html">hangover</a> could be enduring as global rates continue to rise, despite recession signals.”</p>
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 <p class="paragraph">Earlier, the finance <a rel="noopener noreferrer nofollow" title="expert" href="https://thebittimes.com/tag/expert.html">expert</a> pointed out that <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a>s were grappling with the specter of a recession and that the third quarter’s weakness in the <a rel="noopener noreferrer nofollow" title="crypto" href="https://thebittimes.com/tag/crypto.html">crypto</a> space could either be a transient recovery blip or a more ominous sign of an impending recession, as Finbold reported on October 2.</p>
 <h2 class="wp-block-heading" id="h-bitcoin-price-analysis">Bitcoin price analysis</h2>
 <p class="paragraph">Meanwhile, Bitcoin was at press time changing hands at the price of $27,578. This represents an increase of 0.42% in the last 24 hours, as well as still holding onto the gain of 2.88% across the previous seven days and the 6.56% increase on its monthly chart, as per the most recent data on October 4.</p>
 <figure class="wp-block-image aligncenter size-large"><img decoding="async" loading="lazy" width="1024" height="683" src="https://cdn.thebittimes.com/images/2023/10/04/cd150f5332bdd771051a960080068822.webp" alt class="wp-image-131217" srcset="https://cdn.thebittimes.com/images/2023/10/04/cd150f5332bdd771051a960080068822.webp 1024w, https://cdn.thebittimes.com/images/2023/10/04/cd150f5332bdd771051a960080068822.webp 300w, https://cdn.thebittimes.com/images/2023/10/04/cd150f5332bdd771051a960080068822.webp 768w, https://cdn.thebittimes.com/images/2023/10/04/cd150f5332bdd771051a960080068822.webp 1200w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption"><em>Bitcoin 7-day price chart. Source: </em><em>Finbold</em>
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 <p class="paragraph">As the commodities <a rel="noopener noreferrer nofollow" title="expert" href="https://thebittimes.com/tag/expert.html">expert</a> concluded, Bitcoin gaining in 2023, along with most other risk assets, “may be a short-covering rally,” adding that “$30,000 remains pivotal Bitcoin resistance, with risks tilted toward $10,000,” whereas he retains his recession outlook in the United States by the year’s end.</p>
 <p class="paragraph"><strong><em>Disclaimer:</em></strong><em> The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.</em></p>
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<p>Source: <a rel="noopener noreferrer nofollow" target="_blank" href="https://thebittimes.com/commodities-expert-warns-of-lingering-crypto-hangover-tbt65082.html">https://thebittimes.com/commodities-expert-warns-of-lingering-crypto-hangover-tbt65082.html</a></p>

Commodities expert warns of lingering crypto hangover

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