Speaking to Kitco News, Mike McGlone stated that Bitcoin and Ethereum are expected to fall further in the short term. According to the Bloomberg analyst, the reason for the drop is the “Fed’s sledgehammer”, that is, the increase in interest rates to try to control dollar inflation.
Still on Ethereum, McGlone comments that The Merge was an event where everyone got excited, making the price go up. However, now that such investors have returned to their rationale, the price of ETH can once again be seen below $1,000.
Despite all this, the Bloomberg analyst continues with his prediction that Bitcoin will trade for $100,000 in the future. In any case, such a value is forecast for 2025, which could be a test of patience for investors.
Ethereum (ETH) below $1,000?
After The Merge date was announced, investors rushed to buy more ETH, causing its price to jump from $1,000 to $2,000 within a few weeks. Despite this, the euphoria ended with the arrival of the update and today Ethereum is trading at $1,350.
For Mike McGlone, this figure could fall even further and reach worrying levels. According to the Bloomberg analyst, ETH could be below $1,000 in the short term.
“I’m afraid that [o The Merge] have had a lot of euphoria”Bloomberg’s Mike McGlone comments to Kitco News. “[O preço do ETH] can be as high as $1,000, or even less.”
In addition to the euphoria that the biggest Ethereum upgrade has passed, McGlone points out that this is not the biggest problem for ETH and BTC. After all, what is putting pressure on every market, crypto or traditional, is the monetary policy of the US Federal Reserve, the Fed.
“The key to all cryptocurrencies is that they are worth a trillion dollars, the global stock market is a hundred trillion, it has already lost 20, it will probably lose another 20 and I don’t see anything stopping that”comments McGlone.
“Right now, the problem is the Fed’s sledgehammer”
Bloomberg analyst remains confident in BTC resumption
Despite a chaotic short-term scenario, Mike McGlone continues to believe that both ETH and BTC will see meteoric highs. However, its forecast is set for 2025, 3 years from now, and could be a test of patience.
“Here is the key point about BTC. For me, it’s just a matter of time before he hits $100,000. The key point is that the offer is decreasing by your code, you can’t change that. Adoption and demand are growing.”
According to McGlone, the interest rate hike by the Fed is a great way to clean the excesses of the markets, and this pain is necessary for us to have a better future. In addition, the Bloomberg analyst makes it clear that the moment is a great buying opportunity for good assets such as BTC and ETH.