Bloomberg Intelligence senior macro strategist Mike McGlone says Bitcoin’s (BTC) road to recovery comes with big challenges.
McGlone tells his 54,400 Twitter followers that Bitcoin may be forming a bottom similar to 2018, but he warns the macroeconomic conditions are now less favorable than they were back then.
“Bitcoin’s roughly 80% drawdown to the 2022 low about matches the 2018 bottom, but a key difference is global liquidity is contracting. With the Fed and the greatest number of central banks in history still tightening, it’s unlikely a trough, and recovery for the asset referred to as the fastest horse in the race will be that easy.”
McGlone says the Fed is likely to remain hawkish through June and that will create downward pressure on risk