Will Bitcoin crash to 40,000 USD? Strategist warns of collapse
IMPORTANT POINTS:
A Bloomberg commodities analyst believes Bitcoin could drop more than 60% in the coming months.
The expert stated that current inflation will lead the United States to deflation and subsequently to a recession.
This will cause the price of gold to soar and the price of the leading cryptocurrency to plummet, as for him BTC is not a safe-haven asset.
Bloomberg's senior commodities strategist, Mike McGlone, warned that Bitcoin (
$BTC ) could sink to 40,000 USD.
What is his argument? The analyst opined that the macroeconomic conditions are a risk at this moment and that the current inflation in the United States will soon transform into deflation and a subsequent recession.
Target prices for Bitcoin, gold, and the S&P 500, according to Bloomberg
For McGlone, the U.S. benchmark could fall back to 4,000 points from the nearly 6,000 it is currently trading at. This would be an abrupt and unexpected drop for most Wall Street players.
In parallel, he indicated that gold will reach new all-time highs this year and jump from 3,360 USD per ounce to 4,000 USD per ounce.
Finally, he clarified that the price of BTC will take a hard hit and will be worth about 40,000 USD, which implies a potential loss of more than 60%.
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