Mike McGlone, Bloomberg Intelligence's senior macro strategist, has shared his latest insight about the price of Bitcoin (BTC) following a very tumultuous weekend for the biggest cryptocurrency. According to the market veteran, Bitcoin could very well pace declines for risk assets, a comment that shows BTC's influence is now contagious.
McGlone noted that if the current slowdown in the price of the risk assets is far from over, then Bitcoin has what it takes to lead a volatile asset class lower.
The expert's commentary comes at a time when the Bitcoin network is experiencing unusual congestion fueled by the hoard of Ordinals that have made their way to the protocol. The congestion got so clogged at one point over the weekend that it forced big trading platforms like Binance to temporarily halt some transactions.
The sensitivity in the security of the Bitcoin network has reignited sentiment about the likelihood of success of smart contracts on the oldest blockchain as that now represents the new narrative being championed by RSK Infrastructure Framework and other protocols.
Mike McGlone on Bitcoin bear trend
The crypto ecosystem has recorded a very impressive growth trend since the start of the year compared to the mainstream tech sector. McGlone noted that though Bitcoin is up roughly 70% this year, the growth may be from systemic bounces in a broader bear market.
Bitcoin had a very erratic and volatile weekend with the price currently changing hands at $27,882.49 atop a slump of 3.67% over the past 24 hours. Sentiment surrounding Bitcoin has dampened a bit as network congestion typically pushes traders to steer clear of the protocol for the time being.
Bitcoin has helped make it much stronger and more resilient than most risk assets, and more traders' eyes are fixed on it as anticipation for the congestion clearing off mounts.