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Here's What Bitcoin (BTC) Price Chart Is Telling Us Right Now

Tue, 09/05/2023 - 16:30
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Gamza Khanzadaev
BTC's current signs unveiled by Bloomberg's senior strategist Mike McGlone
Here's What Bitcoin (BTC) Price Chart Is Telling Us Right Now
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Recently, Mike McGlone, a senior strategist at Bloomberg Intelligence, shared some interesting observations on Bitcoin's performance. Let's break down what his analysis suggests without just quoting his tweets.

Max Keiser Names Obstacle That May Slow Bitcoin Price Down Now

As of Sept. 1, BTC saw a 15% drop in the third quarter, while the Nasdaq 100 Stock Index recorded a 2% gain during the same period. McGlone believes that this difference might indicate something significant.

According to McGlone, the relative weakness of Bitcoin could potentially be an early sign of a broader stock market downturn, possibly hinting at an upcoming recession. Alternatively, it might simply mean that Bitcoin is losing ground compared to traditional stocks.

The difference

One crucial factor McGlone points out is the impact of rising interest rates. Federal funds futures predict rates rising to about 5.42% in November, a significant change from the near-zero rates of 2021 and 2011. This shift could have significant consequences for Bitcoin and the financial markets as a whole.

When examining the data, it becomes clear that both Bitcoin and the Nasdaq have shown similar gains of around 30% over the past year. However, when considering risk, Bitcoin displays greater volatility over its 260-day average compared to the Nasdaq.

Bitcoin (BTC) Drop to $23,000 More Than Possible: Here's Why

These findings have sparked discussions of Bitcoin's future, with some experts speculating that the cryptocurrency might have entered a bear market following its peak in 2021. Given that Bitcoin has grown substantially since its initial trading at $1 in 2011, the implications of its recent performance are vital for investors worldwide.

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About the author

Financial analyst, trader and crypto enthusiast.

Gamza graduated with a degree in finance and credit with a specialization in securities and financial derivatives. He then also completed a master's program in banking and asset management.

He wants to have a hand in covering economic and fintech topics, as well as educate more people about cryptocurrencies and blockchain.