The biggest crypto currency Bitcoin (BTC) is under heavy pressure due to recession concerns surrounding global markets, high interest rates and climbing trade wars. Although long -term investor interest continues, BTC is forced to exceed the threshold of 85 thousand dollars. Bitcoin price is traded at 84 thousand 596 dollars at the time of the article. This price is 22 percent below the highest level of all time reached at the beginning of the year at approximately 109 thousand dollars. Analysts began to talk about a possible collapse scenario after acceleration in Bitcoin.
Macroeconomic Threats Shake Bitcoin
Bloomberg Intelligence’s Senior Commodity Strategist Mike McGlonethe global economic appearance contains serious threats for Bitcoin. According to McGLone, if there is a harsh correction in the US stock market, especially if the S&P 500 index falls to 4 thousand levels, Bitcoin is likely to fall up to 10 thousand dollars. This scenario means Bitcoin’s return to its average values before the spandem.
The slowdown in global growth increases the likelihood of deflation in Chinese bonds and oil prices. Add to this table that high interest rates adversely affect investor sensitivity Crypto Money Market The pressure on it gets stronger. McGlone added that the US stock exchanges were completely broken from the national economy, and that this incompatibility was previously seen before the 1929 US and 1989 Japan crises.
Bitcoin and stocks are separated
Bitcoin, which has moved in parallel with risky assets for a long time, has relaxed this bond in recent months. As the gold rises, both Bitcoin and stocks tend to decline. This is the investors Crypto Money ETFHe points out that he began to see their high -risk investment instead of a safe harbor.
The fact that the gold/silver ratio exceeds 100 creates anxiety in the market. Historically, this ratio reached similar levels just before global economic recessions. According to McGlone, Bitcoin’s basic indicators indicate that the price should be below $ 17,000. Pointing to Bloomberg’s private Bitcoin index, McGlone claimed that the price is extremely valuable under current conditions.
There is hope unless it does not come below 69 thousand dollars
Altcoin Daily The commentators are in a more cautious optimism for Bitcoin. According to them, in case of a harsh recession, the largest crypto currency is possible to fall to $ 20,000, but for such a large collapse scenario, the level of $ 69 thousand needs to be broken down. For now, this threshold is working as a strong support point.
According to the commentators, especially the expansion of the central banks outside the United States and increasing global liquidity decreases may be limited. The fact that Bitcoin has not tested its old bottoms despite the last S&P correction supports this view. According to analysts, Bitcoin is still strong and investors have not yet opened panic mode.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
