Has Bitcoin/Gold Peaked?
In a recent analysis, Bloomberg’s chief commodity strategist, Mike McGlone, shed light on the ongoing reversal in Bitcoin prices, which have significantly declined from their previous all-time high of $108,268 to the current level of $93,000. This shift is not isolated to Bitcoin alone; it extends to gold and other risk-laden assets. Due to Bitcoin’s inherent volatility, this digital currency has experienced the most pronounced impact.
McGlone described the significant downturn in Bitcoin prices as “just a bit of normal reversion,” suggesting that the market is undergoing a typical correction phase. As of now, Bitcoin is trading at approximately $93,260, marking a decrease of over 2% in a single day. Over the past week, Bitcoin has plummeted by roughly 14%, descending from the $108,300 mark.
Market Crash Ahead?
In a recent social media post, Robert Kiyosaki, the author known for “Rich Dad Poor Dad,” hinted at the potential onset of a global economic downturn. He expressed concerns about another depression possibly looming on the horizon and advised his followers to be prudent with their financial resources, emphasizing the importance of maintaining jobs and stable income sources.
Kiyosaki maintained that regardless of economic fluctuations, assets such as gold, silver, and Bitcoin are likely to retain their value. He emphasized that economic crashes often present lucrative opportunities for wealth accumulation, stating, “I plan on getting richer. I want you to get richer and smarter too.”
BTC Crash Concerns
Adding to the discourse, a recent report from The Kobeissi Letter speculated about a potential Bitcoin crash, projecting a $20,000 drop in the coming weeks. The report connected Bitcoin’s valuation trends to the global monetary supply, suggesting that if Bitcoin continues to mirror these patterns, a significant dip might be imminent. This prediction arises amidst heightened market volatility, with Bitcoin recently breaching the psychological $100,000 threshold.
Is Bitcoin Overdue for a Correction?
Historically, Bitcoin prices have shown a tendency to follow global money supply trends with approximately a ten-week delay. As the global money supply reached a record $108.5 trillion in October, Bitcoin prices concurrently achieved an all-time high of $108,000. However, over the past two months, this upward trend has reversed.
Crypto market expert Rekt Capital pointed out a bearish trend, noting that Bitcoin has formed a Bearish Engulfing Candlestick pattern, indicating further bearish momentum. He observed that Bitcoin has lost its weekly support and the five-week technical uptrend appears to have ended. Based on these developments, the expert warned of a potential multi-week correction on the horizon.
Despite these challenges, institutional interest in Bitcoin remains robust. Companies such as Matador and MicroStrategy continue to demonstrate their confidence in Bitcoin by maintaining their purchasing strategies.
