Mike McGlone, senior Bloomberg strategist in raw materials, expressed the opinion that bitcoin (BTC) may fall to $ 40,000, despite the fact that today its price has risen above $ 106,000.
Macglone explained his radically bear forecast by macroeconomic trends, in particular, the risk of deflation and a protracted recession, which can greatly affect risky assets, including bitcoin.
He pointed to the recent peak of the Bitcoin ratio for gold in May, suggesting that it was maximum, especially if the US stock markets begin to decline.
Despite the fact that the markets in many respects ignored the fears of the recession in 2023, McGlone believes that the economic decline was postponed.
In this case, investors can turn to traditional safe refugees, such as gold, if the economy is reduced, and the S&P 500 index will fall to the level of 4000. Thus, gold can grow to $ 4000 per ounce, and the ratio of bitcoin to gold can fall to about 10, which implies the BTC price of about $ 40,000.
Such a decrease will mean a fall by more than 60% compared to the current price of $ 106,600.
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Source: Cryptocurrency
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