Cryptocurrency Downturn Expected, Says Bloomberg Analyst

Renowned macro strategist Mike McGlone of Bloomberg Intelligence shares a grim perspective on the trajectory of Bitcoin (BTC) and other cryptocurrencies in a recent Blockworks Macro interview.

McGlone believes that a stock market crash is on the horizon. This downturn, he predicts, would hit Bitcoin significantly, pushing it to a new bear market low.

McGlone suggests that most altcoins will be hit hard by a stock market crash. They are likely to suffer a strong correction, in his opinion. And he adds: “Cryptocurrencies will fall very hard. We are going to purge some of these 24,000 cryptocurrencies. Get rid of some. They are just dumb.

Silver linings for Bitcoin and Ethereum

Despite this gloomy forecast, he remains optimistic for Bitcoin and Ethereum. He believes that these cryptocurrencies will weather the storm and eventually emerge stronger.

The senior macro strategist at Bloomberg Intelligence forecasts that the recession could stretch out for several months. “Next year will be more durable. It's just going to go with it... You have to get through this enduring period of a severe, I would say, asset purge. That's my base case."

Bitcoin performance in a stable stock market

Even if the stock market defies McGlone's expectations and holds steady, he doesn't see Bitcoin outperforming other assets. “If we don't take the stock market down, I don't expect Bitcoin to outperform in that case. So there's kind of a win-win."

At press time, Bitcoin's trading price stood at $27,050 according to CoinMarketCap data.