Huge Bitcoin Reverse Explained by Bloomberg’s Mike McGlone: Details

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As a seasoned analyst with over three decades of market observation under my belt, I find myself intrigued by the current state of Bitcoin and other risk assets. Mike McGlone’s analysis seems plausible, as the unprecedented strength of the S&P 500 this year is unlikely to be sustained indefinitely. The high volatility of Bitcoin, making it trade roughly 3x the volatility of beta, has resulted in a significant drawdown that other assets have not yet experienced.

Mike McGlone, Bloomberg’s lead commodity strategist, recently shared his insights on a popular social media platform X, explaining why Bitcoin’s price has experienced a significant decline, falling not only below its previous record high of $108,268 but also dipping further to trade currently below $94,000.

As I, a researcher, examine the current state of Bitcoin and Gold, it appears they might be experiencing a typical correction in assets with heightened risk. The volatility of Bitcoin makes it one such asset. It’s plausible that these peaks are indicative of market normalization.

— Mike McGlone (@mikemcglone11) December 23, 2024

McGlone clarifies Bitcoin reverse

In a recent tweet, Bloomberg’s lead strategist pointed out that the recent downturn impacts not just Bitcoin, but also gold and other high-risk investments. Interestingly, Bitcoin appears to have taken the brunt of this decline, largely because of its exceptional level of price fluctuations.

The analyst pointed out that unlike Bitcoin, the S&P 500 index has not seen any major drawdown in the fourth quarter this year, while BTC is trading roughly 3x the volatility of beta. Still, McGlone added, S&P 500’s remarkable strength that is being shown so far will not necessarily hold next year, according to the tweet: “That the S&P 500 hasn’t had a 10% drawdown since 4Q23 is unlikely to be sustained in 2025.”

Regarding the recent drop in Bitcoin’s value, McGlone attributes this mainly to a normal correction. Today, Bitcoin dipped by 2.45%, going from $96,275 to $93,660. Over the past week, we’ve seen Bitcoin lose about 14% as it plunged from over $108,300 down to its current trading price. In simpler terms, a normal fluctuation in value caused Bitcoin to decrease significantly in the past week.

Bitcoin holds its value no matter what per Robert Kiyosaki

Today, the well-known Bitcoin investor and author known for his bestseller “Financial Literacy: Rich Dad, Poor Dad,” Robert Kiyosaki, shared some thoughts on Bitcoin, gold, and silver via a tweet.

He stated that the global crash of economies and financial markets, which he predicted multiple times earlier, has started and what lies ahead might be another Great Depression. He advised that his readers on the X platform should be smarter with their money and hold on to their jobs and sources of income.

It seems that a financial crisis has begun, affecting major economies such as Europe, China, and the United States. Are difficult times like a depression on the horizon? To ensure your financial stability, it’s crucial to manage your money wisely and hold onto both your job and savings. A significant issue lies with our leaders and educators, as one might question: “What did you learn about money at school?” No matter what the circumstances may be, it is essential to prioritize financial literacy.

— Robert Kiyosaki (@theRealKiyosaki) December 23, 2024

However, he pointed out that regardless of which path any economy in the world (but particularly the US one) takes, “gold, silver, and Bitcoin hold their value.” Kiyosaki also reminded the community his favorite thesis about making a fortune and opportunities during market crises: “For many people crashes are the best times to get rich.”

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2024-12-23 18:29