Market News

Bitcoin Faces Critical Crossroads: Bloomberg Analyst Warns of Potential Collapse

The cryptocurrency market is currently grappling with Bitcoin's (BTC) recent downturn, heightened by conflicting macroeconomic data.

In a recent episode of the Wolf Of All Streets podcast, Bloomberg's senior strategist Mike McGlone discussed market trends alongside investor Scott Melker.

A significant topic was the US Consumer Price Index (CPI) data, which showed a decline to 2.6%.

McGlone raised concerns about the authenticity of these figures, suggesting the inflation narrative may be misleading due to decreased demand.

Melker echoed this skepticism, labeling the government's data collection as questionable while indicating the potential for interest rate cuts in the near future.

Amidst this backdrop, McGlone issued stark warnings for Bitcoin's trajectory, likening current market conditions to historical financial crises.

He predicted that Bitcoin could plunge to as low as $50,000, anticipating a significant 90% correction, particularly impacting altcoins.

The strategist characterized the market as being in a "pump and dump" phase, with increasing ties to the stock market heightening risk levels.

In the short term, Melker noted Bitcoin's price volatility, oscillating between $85,000 and $90,000, while identifying the $69,000-$74,000 region as crucial support.

A fall beneath this threshold could spell trouble, with Melker warning that it would represent a serious margin of error for Bitcoin investors.