Bloomberg Expert Analyst Explains Why A Fall To $10,000 Isn’t Bad For Bitcoin
29 August 2023 - 1:00PM
NEWSBTC
Since the price of Bitcoin fell below $30,000, numerous forecasts
have been made on the currency’s potential future price outlook of
the asset. As the biggest cryptocurrency in the world, Bitcoin has
amassed price headlines, some of which are optimistic while others
are pessimistic. However, a question that lingers is whether
another crash is really the end of the world for Bitcoin. In such
an event, Mike McGlone, a senior analyst at Bloomberg, believes
that even a decrease in price to $10,000 would not be bad for
Bitcoin. Bitcoin Still Outperforming The Stock Market A fall in
Bitcoin to $10,000 would definitely lead to a chain of events in
other cryptocurrencies, as most of the general market sentiment
relies on Bitcoin. While many short-term holders and some long-term
holders may panic sell, the long-term outlook is still
bullish. Related Reading: JP Morgan Explains Why Bitcoin
Price May Not Fall Further Market analyst Mike McGlone puts the
Bitcoin performance in comparison with the stock market, and the
Amazon stock in particular. He points out that even with a 50% drop
in its current price, BTC would still be outperforming Amazon
stock. Amazon has had one of the best growth in terms of stock
price in 20 years. Over the past 20 years, Amazon shares have
generated a total return of over 7,000%. However, this is small
when compared to how much BTC has grown since its launch in 2009
since the asset is up 26,000x since it first traded for $1 in
2011. “Bitcoin compares with 130% for Amazon on a similar
measure, but that took about 25 years. Heading back towards $10,000
would still maintain Bitcoin’s unprecedented performance,” he
said. ‘It Went Up, So Will Keep Going Up’ Risks in Bitcoin –
The lessons of high-performing, widely hyped assets show price
reversion may be the greater risk once the masses jump on board.
#Bitcoin at about $26,000 on Aug. 28 is slightly below the end of
2020, similar to… pic.twitter.com/3UdAbpLNLe — Mike McGlone
(@mikemcglone11) August 28, 2023 Bitcoin is known for wild price
swings since digital currencies are emerging assets, and volatility
comes with the territory. With a current market cap of $506
billion, BTC has a 48.3% dominance in the crypto market. BTC price
fails to reclaim $26,000 | Source: BTCUSD on Tradingview.com What’s
Next For BTC? Bitcoin is currently trading at $26,000 after the
cryptocurrency climbed over $30,000 earlier this year but fears
have pushed the price back down to its current level. At its
current levels, however, BTC is up more than 30.75% from the same
period last year, showing a better price sentiment than in 2022.
While BTC could definitely fall further below $26,000, a fall
toward $10,000 is highly unlikely as many things would have to go
wrong for BTC to reach $10,000. BTC is also gaining more mainstream
traction from institutions, especially with current spot Bitcoin
ETF filings. As a result, there is a greater possibility of
Bitcoin’s price increasing than decreasing in the coming
months. Related Reading: Another Bitcoin Metric Is About To
Reach A New All-Time High Despite The Bear Market This is not the
first time $10,000 price predictions have come in regarding BTC.
Late last year, Mark Mobius, founder of Mobius Capital predicted
Bitcoin might drop to $10,000 in the short term. On the other
hand, there have been some optimistic forecasts made recently. Tom
Fundstrat, one of the co-founders of Fundstrat, believes the price
of BTC could reach $150,000 or maybe even further by the end of
next year. Featured image from iStock, chart from Tradingview.com
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