Bitcoin Price In A Turbulent Week: This Crypto Market Strategist Weighs In
May 09 2023 - 7:14AM
NEWSBTC
Bitcoin, the world’s largest and most well-known cryptocurrency,
has had a tumultuous past few days, and according to Mike McGlone,
a senior macro strategist at Bloomberg Intelligence, the volatility
in the BTC market could very well impact other risk assets.
McGlone believes that BTC’s influence on the market has become
contagious, and as a result, other risk assets could be negatively
affected if the price of BTC continues to decline. McGlone’s
comments are a reflection of the growing awareness of BTC’s
influence on the global economy. As BTC continues to gain
mainstream acceptance and adoption, its movements are being closely
watched by investors and policymakers alike. Related Reading:
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45% Risk Assets At Risk? Bitcoin Network Congestion Raises Concerns
At a time when the Bitcoin network is currently facing
unprecedented levels of congestion due to the influx of Ordinals,
McGlone has shared his views on the potential impact of Bitcoin’s
price decline on other risk assets. Over the weekend, the
congestion became so severe that major trading platforms like
Binance were forced to temporarily halt some transactions. Bitcoin
Could Pace Declines for Risk Assets – If the worst isn’t over for
risk assets, #Bitcoin may lead the way lower.
pic.twitter.com/UlEVjCEKwr — Mike McGlone (@mikemcglone11) May 8,
2023 According to McGlone on Twitter, if the current decline in the
value of risk assets continues, Bitcoin has the potential to lead
the rest of the volatile asset class downwards. He emphasized that
the influence of Bitcoin on the market is now contagious, and its
impact can be felt across the financial system. In other
words, if Bitcoin’s price continues to drop, it could trigger a
domino effect that results in the decline of other risky assets.
Bitcoin’s Network Congestion, Volatility Raise Regulatory Concerns
McGlone’s comments regarding the potential impact of Bitcoin’s
price volatility on the broader financial system come at a time
when investors are growing increasingly worried. The
cryptocurrency’s fluctuations could potentially have ripple effects
on the global economy, underscoring the need for regulatory
oversight. BTCUSD drops the $28K handle. Chart: TradingView.com
Related Reading: Ethereum Gas Fees Skyrocket: What Does It Mean For
Investors? Meanwhile, the current BTC price, as reported by
CoinGecko, has decreased by 0.89% in the past 24 hours and 1.28%
over the last seven days, indicating a general downward trend.
Source: CoinMarketCap This downward trend could exacerbate concerns
about Bitcoin’s potential impact on the financial system and prompt
calls for increased regulatory measures. The recent halt of
transactions on major platforms such as Binance due to network
congestion issues also highlights the urgent need to find a
solution. If left unaddressed, network congestion could lead to
significant disruptions in the cryptocurrency market. As such,
regulators must take swift action to mitigate the risks associated
with the market’s volatility and ensure its stability. -Featured
image from Global News
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