The cryptocurrency market speculates that better days might be closer than expected for Bitcoiners. According to some market analysts, Bitcoin, the largest crypto by market cap, has bottomed.
However, a key figure in the market has put out an opposing viewpoint. McMGlone, a senior strategist at Bloomberg, does not seem to agree that Bitcoin has bottomed.
A Bitcoin bottom is usually good news for Bitcoin proponents. When Bitcoin hits rock bottom, a bounce happens, and the price of the asset typically takes an upward turn. It is, however, worth noting that predicting a Bitcoin bottom is extremely difficult, and predictions have often been inaccurate.
The strategist maintains that Bitcoin must surge to a $25,000 level to work its way back to Risk-Asset Revival. He further asserted that the cryptocurrency market, which often correlates with the stock market, might reveal an increase in short positions this month if the stock market lows aren’t in yet.
“Bitcoin May Need to Breach $25,000 for Risk-Asset Revival – Just in case the crypto and stock market lows aren’t in, tactical Bitcoin/crypto shorts could be warranted at the start of March. Monetary policy acts with a long, variable lag. A year ago, the Fed funds rate was zero.” McMGlone explained.
Crypto market experiences bearish storm; Bitcoin and other altcoins shed significant gains
The cryptocurrency market has seen its fair share of losses and gains in 2023, although it appears that the losses outweigh the gains at this time. Bitcoin, the leading cryptocurrency and the altcoin market, recorded gains at the start of the year. This would bring a positive outlook to the market, as sentiments from crucial players took a bullish turn.
At the time of this report, Bitcoin and most altcoins in the market are recording significant hourly and daily losses. The cryptocurrency market has seen a 4.19% decline as the global crypto market cap drops to $1.02 trillion.
Bitcoin is down by 4.80% in the last 72 hours, causing it to lose momentum above $23,000. Bitcoin almost closed February above $24,000 after building momentum at that price point for six days. Despite the slight price decline, at the close of February, the asset managed to sit above $23,000.
BTCUSD Chart by TradingView
Bitcoin now trades at $22,444. With the market shedding a lot of gains, the asset might drop even lower, as some market analysts had predicted.