Mike McGlone, senior commodity strategist at Bloomberg, has predicted that the price of Bitcoin might potentially plunge to $70,000.
The widely tracked Bitcoin to gold ratio, which measures how many ounces of the yellow metal are required to purchase a single coin, is currently sitting at 28X. However, McGlone expects Bitcoin to keep underperforming this year, with the ratio potentially dropping to as low as 21X.
Alex Dovbnya"My bias is leaning that way, especially if the US stock market reverses some of last year's almost $12 trillion advance," McGlone said.
Extreme fear returns
Meanwhile, the Bitcoin market has succumbed to "extreme fear" once again despite the excitement surrounding the creation of a strategic Bitcoin reserve in the U.S.
Earlier today, Bitcoin plunged to an intraday low of $80,123, according to CoinGecko data. The flagship cryptocurrency is changing hands at $81,321 at press time.
A broader bearish trend?
Meanwhile, anti-crypto financial commentator Peter Schiff has opined that the correction was overdue, predicting that it will continue for the rest of the decade. "I believe this will be a powerful trend that is long overdue and will likely continue for the rest of the decade," he noted.
A big short
According to Lookonchain data, a whale who shorted Bitcoin during the recent price corrections ended up raking in more than $7.5 million worth of unrealized profits.
The whale in question shorted Bitcoin at $96,500 in February. Notably, the whale placed limit orders to take profit between the $70,000-$74,000 levels.
Dan Burgin
Vladislav Sopov