Bitcoin's price fell below $60,000 on Tuesday and Wednesday after significant gains over the weekend following the Fed’s pivot to lower interest rates.
Bloomberg Analysis
Despite the market moves, Bloomberg analyst Mike McGlone remains bearish on Bitcoin’s prospects. He believes that the observable lack of enthusiasm in the market may indicate a slow-going road ahead for this highly secure Web3 property.
Bitcoin to U.S. Stocks Multiple
On Tuesday, McGlone asked his followers on X (formerly Twitter): “Is the fastest horse signaling the race is over?” He noted that the Fed’s biggest money pump ever and recent ETF launches might suggest a 'hangover' for Bitcoin. McGlone’s argument is that the ratio of Bitcoin’s price to the S&P 500 Index seems weak compared to recent market history. Currently, the BTC/S&P 500 ratio stands at about 11x, whereas it peaked at 15x in the first quarter of 2021 and reached 14x earlier this year.
Bitcoin Price to $81,000?
If Bitcoin were to reach the 15x S&P 500 ratio again, it could rise to $81,818 even if the index stayed at the current level. This figure was mentioned by Blockstream CEO Adam Back, who recently targeted an $80,000 Bitcoin price prediction based on analysis from a hedge fund of MicroStrategy stock. McGlone argues that such a ratio shows weakness in BTC markets but also potentially indicates that Bitcoin is underpriced relative to cyclical trends. If the S&P 500 Index grows at its current pace, and Bitcoin's price hits the 15x level again, BTC could exceed $98,000. The last time Bitcoin markets achieved this multiple was ten months after the third halving. So far, it has been only five months since the fourth halving.
Current forecasts suggest that Bitcoin still holds significant growth potential in the near future. It is important to monitor further market developments and analysts' statements.
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