Bitcoin Even? Bloomberg's McGlone Predicts BTC Will Fall $70,000

The latest Bitcoin (BTC) price drop has accelerated along with market uncertainty, inflation worries, and changing investor sentiment putting increasing pressure on the dominant cryptocurrency. According to Bloomberg senior commodity strategist Mike McGlone, the BTC price could drop to $70,000 amid economic uncertainty and the possibility of reversing the recent rally in the US stock market. Bitcoin Price Faces New Fears The cryptocurrency market is in a wave of increased vigilance as the price of Bitcoin does not accelerate. Despite the positivity surrounding recent government moves, such as the proposal for a strategic BTC reserve in the United States, investor sentiment remains uncertain. The ratio of Bitcoin to gold, which indicates how much gold it takes to buy a BTC, is 28X. However, McGlone said Bitcoin's poor performance against gold could reduce the ratio to 21X over the next few months. The price of Bitcoin fell to an intraday low of $80,052.49 earlier today. This is a sharp drop from last week's high of $95,000, adding to the market's pessimistic sentiment. Meanwhile, prominent BTC skeptic Peter Schiff commented on the recent downturn, saying that a correction is overdue. For Schiff, BTC's decline could continue for some time, potentially lasting until the end of the decade. Macroeconomic indicators are still the main factors influencing Bitcoin's price action. The recent U.S. (NFP) Nonfarm Payrolls data released on Friday showed that the unemployment rate is rising, adding to investors' worries about inflation. The announcement reinforced concerns that the economy was preparing for more difficult times and subsequently led to a change in capital allocation strategies. Despite the initial excitement when former President Donald Trump announced the strategic Bitcoin reserve, the enthusiasm has faded, as mentioned in our previous article. Market participants are reassessing the potential impact of such a policy amid general economic uncertainty. Institutional investors become cautious Institutional investors have avoided buying large Bitcoins because policymakers are still at odds over the cryptocurrency's place in the financial system. A recent White House summit on digital assets did not provide clear direction, and investors continued to restrain, as noted in our previous article

As economic concerns have increased, there has been a growing move towards traditional safe-haven assets. The yield on the 10-year US Treasury has soared to 4.3%, the most recent level recorded in November 2023, while the yield on the 10-year German Bund has risen to 2.45%. Japanese government bond yields also rose, reaching 0.88%, the most recent level recorded in 2013. This increase in yields makes bonds more attractive to institutional investors, leading to capital outflows from risky assets such as BTC. However, retail investors are rebalancing their portfolios to cope with the rising cost of living due to rising prices due to tariffs. Despite the high selling pressure, Bitcoin miners persist in holding a large amount of shares. Reports suggest that mining companies have deposited around $900 million in Bitcoin into their treasury, implying that long-term confidence in the asset is not broken despite short-term volatility.