Bitcoin Price In A Turbulent Week: Bloomberg Strategist Weighs In
2 min readBitcoin, the world’s largest and most well-known cryptocurrency, has had a tumultuous past few days, and according to Mike McGlone, a senior macro strategist at Bloomberg Intelligence, the volatility in the BTC market could very well impact other risk assets.
McGlone believes that BTC’s influence on the market has become contagious, and as a result, other risk assets could be negatively affected if the price of BTC continues to decline.
McGlone’s comments are a reflection of the growing awareness of BTC’s influence on the global economy. As BTC continues to gain mainstream acceptance and adoption, its movements are being closely watched by investors and policymakers alike.
Risk Assets At Risk? Bitcoin Network Congestion Raises Concerns
At a time when the Bitcoin network is currently facing unprecedented levels of congestion due to the influx of Ordinals, McGlone has shared his views on the potential impact of Bitcoin’s price decline on other risk assets.
Over the weekend, the congestion became so severe that major trading platforms like Binance were forced to temporarily halt some transactions.
Bitcoin Could Pace Declines for Risk Assets –
If the worst isn’t over for risk assets, #Bitcoin may lead the way lower. pic.twitter.com/UlEVjCEKwr— Mike McGlone (@mikemcglone11) May 8, 2023
According to McGlone on Twitter, if the current decline in the value of risk assets continues, Bitcoin has the potential to lead the rest of the volatile asset class downwards.
He emphasized that the influence of Bitcoin on the market is now contagious, and its impact can be felt across the financial system.
In other words, if Bitcoin’s price continues to drop, it could trigger a domino effect that results in the decline of other risky assets.
Bitcoin’s Network Congestion, Volatility Raise Regulatory Concerns
McGlone’s comments regarding the potential impact of Bitcoin’s price volatility on the broader financial system come at a time when investors are growing increasingly worried.
The cryptocurrency’s fluctuations could potentially have ripple effects on the global economy, underscoring the need for regulatory oversight.
BTCUSD drops the $28K handle. Chart: TradingView.com
Meanwhile, the current BTC price, as reported by CoinGecko, has decreased by 0.89% in the past 24 hours and 1.28% over the last seven days, indicating a general downward trend.
Source: CoinMarketCap
This downward trend could exacerbate concerns about Bitcoin’s potential impact on the financial system and prompt calls for increased regulatory measures.
The recent halt of transactions on major platforms such as Binance due to network congestion issues also highlights the urgent need to find a solution. If left unaddressed, network congestion could lead to significant disruptions in the cryptocurrency market.
As such, regulators must take swift action to mitigate the risks associated with the market’s volatility and ensure its stability.
-Featured image from Global News
