In a recent report, Mike McGlone, a senior strategist at Bloomberg Intelligence, has expressed concern about potential roadblocks that Bitcoin may face on its way to reaching the $40K price point. McGlone mentioned the potential roadblocks as a cause for concern in the report.
McGlone shared this opinion after analysts’ and industry professionals’ optimism that the leading digital asset is about to embark on a new bull cycle. Recall that Bitcoin recently traded at $31,400, a feat it hadn’t attained in the last 12 months.
Investors Await ETF Access
In his latest report, McGlone reported that investors are on the verge of gaining access to exchange-traded funds (ETFs) approved by the US SEC. The analyst stated that the US regulator would eventually approve a spot BTC ETF as demands continue to rise.
BlackRock’s spot Bitcoin ETF is one of the exchange-traded funds (ETFs) expected to be available to investors soon after the asset management fund filed a proposal with the US SEC this week. However, McGlone remains cautious and states that the launch of these ETFs might not fuel the next BTC bull run despite widespread beliefs.
McGlone’s report highlights several concerns, including the possibility of a recession in the United States, a bear market for stocks, and the US Fed’s preference for a hawkish monetary policy.
Central Banks’ Rate Policies And Cryptocurrency Growth
According to McGlone, various factors will hinder BTC from trading the $40K soon, referencing the cryptocurrency’s past struggles to surpass the $30,000 price. McGlone also cautioned about the excitement surrounding the recent Bitcoin ETF proposals, stating that it is unlikely that the US SEC will approve these proposals this year.
According to the Bloomberg Economist, the United States may enter a recession within the next few months. This could further slow down uptrends in the Bitcoin market.
He further said that the ongoing hike in interest rates and the low liquidity of the US dollar by the US Federal Reserve are significant challenges that can affect Bitcoin’s bullish action. McGlone further said that crypto assets would likely experience a lull in price action as most central banks tighten their rates in June.
Meanwhile, experts predict that there will be a rise in the unpredictability surrounding BTC’s price action as the Nasdaq 100 stock index approaches its peak levels. McGlone’s analysis may provide a pessimistic outlook, but most of his opinions about the financial markets have always been spot on.
Nevertheless, many industry players and market observers are confident that BTC will surpass the $40K price before its next halving event.
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