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If Bitcoin (BTC) Stalls at $30,000, Here's What May Happen to Economy: Mike McGlone

Published 2023-07-20, 10:30 a/m
© Reuters.  If Bitcoin (BTC) Stalls at $30,000, Here's What May Happen to Economy: Mike McGlone
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U.Today - Chief commodity strategist of Bloomberg Intelligence Mike McGlone took to Twitter to share a screenshot from a recent Bloomberg report that included something important about .

McGlone believes that if Bitcoin fails to rise higher than the current $30,000 level, it may be a bad sign for the whole U.S. economy.

"If Bitcoin stalls, there may be a bigger issue" with Nasdaq

The expert reckons that should the flagship cryptocurrency, which many believe to be "the fastest horse in the race," stall in the $30,000 range despite the hype created by the potential launch of a BTC spot ETF, it may indicate bigger economic issues than the U.S. is seeing now.

that since the end of Q1 this year, the Bitcoin price has risen by 5%, unlike the Nasdaq Composite index, which increased by almost 20%. He stated that the recent rally of risk assets has not been endorsed by Bitcoin. In order to rise, BTC may have to pass through a significant drop first, McGlone wrote in the report, and if Bitcoin stalls now where it is — around $30,000 per coin — it may "portend headwinds from a potential deflationary economic storm."

As for BlackRock (NYSE:BLK)'s filing for a Bitcoin spot ETF, the strategist continued, it sparked a short-lived price surge, similar to the emergence of Bitcoin futures in December 2017. He believes that the SEC might not approve of the ETF this year (if it does at all), and in the second half of 2023, the U.S. to face a recession.

At the time of this writing, the digital gold (BTC) is changing hands at $30,242, according to data from CoinMarketCap. Over the past 24 hours, the BTC price has increased by nearly 1%.

This article was originally published on U.Today

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