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Mike McGlone, the chief commodity expert at Bloomberg Intelligence, who periodically tweets about top cryptocurrencies Bitcoin and Ethereum, has published a post about DOGE today.
In that tweet, the commodity strategist revealed a gloomy prospect for the price of the original meme coin and explained his conclusions.
Alex Dovbnya"Dogecoin may show the risks of reversion"
In his tweet, McGlone has once again likened crypto to the biggest bubbles in the history of financial markets. Over the past couple of weeks, he has been drawing parallels between the current situation of Bitcoin and the tech Nasdaq 100 index, which crashed in early 2000 after it reached an all-time high of 4,700 points and then rapidly plummeted to 800.
Now, McGlone has mentioned the historic bubbles that emerged on the market in 1929 and 1999, which eventually led to the Great Depression and the dot-com bubble crash. His tweet now suggests that Dogecoin has become part of major market speculation and may face a reversion soon, like risk assets during the aforementioned market bubbles.
McGlone tweeted that the ratio at which gold is trading to Bitcoin is closely mirroring DOGE price movements at the moment. This may indicate that DOGE and other speculative assets (including Bitcoin, according to McGlone’s earlier tweets) may go into a deep decline. Meanwhile, in this case, investors are likely to start withdrawing funds from Dogecoin and Bitcoin and start putting them into gold.
Yuri MolchanBitcoin may crash to $10,000, per McGlone
In tweets published earlier this month, McGlone predicted that Bitcoin may crash as low as $10,000, also pointing out the similarities between the dot-com bubble 25 years ago, which resulted in the Nasdaq crash, and a similar bubble forming now for risk and speculative assets, including Bitcoin and U.S. stocks.
As if sharing his thoughts, Ark Invest CEO Cathie Wood has recently, for the first time, decreased the number of Meta shares in the company’s portfolio.
Vladislav Sopov
Dan Burgin