Bitcoin Facing Economic Reset Amid Liquidity Crisis, Says Crypto Analyst
Portfolio Pulse from Bibhu Pattnaik
Bloomberg macro strategist Mike McGlone has warned that Bitcoin (BTC) could be facing a liquidity crisis and a 'severe economic reset' due to a sharp decline in liquidity. Despite a buoyant stock market and the potential approval of U.S. spot exchange-traded funds (ETFs), Bitcoin has seen a 15% decrease in Q3 leading up to Sept. 6. McGlone suggests that Bitcoin's price could adjust in the face of rising interest rates, with federal funds futures projected to reach about 5.45% in November, a significant jump from the 0.6% average noted from 2011 to 2021.
September 10, 2023 | 2:35 pm
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Bitcoin could face a liquidity crisis and a 'severe economic reset' due to a sharp decline in liquidity, according to Bloomberg macro strategist Mike McGlone. This comes despite a buoyant stock market and the potential approval of U.S. spot exchange-traded funds (ETFs).
The warning from Bloomberg macro strategist Mike McGlone about a potential liquidity crisis for Bitcoin is significant. The cryptocurrency has seen a 15% decrease in Q3 despite a buoyant stock market and the potential approval of U.S. spot exchange-traded funds (ETFs). This, coupled with the projected rise in federal funds futures to about 5.45% in November, could lead to a price adjustment for Bitcoin.
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