The unprecedentedly pessimistic outlook for Bitcoin’s technical indicators has sparked heated debates within the cryptocurrency and macroeconomic circles. Leading strategists who gathered for the “Macro Monday” program were completely divided on the future of Bitcoin.
The debate centered on whether Bitcoin is a “store of value” or a “bubble about to burst.”
Bloomberg Senior Commodities Strategist Mike McGlone painted a rather pessimistic picture for Bitcoin and the crypto market in general. McGlone placed Bitcoin in the same category as thousands of other crypto assets, arguing that there is an “unlimited supply of cryptocurrencies” in the market, which will lead to a decline in value.
The strategist, stating that Bitcoin’s performance in 2024 is “the best point it can reach,” claimed that the market is entering a crash similar to the Tulip Mania in history and that the price could fall to the $10,000 level.
McGlone, stating that Bitcoin is a risky asset (beta), argued that a potential decline in stock market indices would hit Bitcoin hard.
Investment manager Larry Lepard strongly criticized McGlone’s views, highlighting Bitcoin’s cyclical nature. Lepard stated that Bitcoin is the first successful example of the concept of “digital scarcity” and that its 17-year history shows consistently increasing adoption.
Lepard sharply criticized McGlone’s “unlimited supply” claim, stating that Bitcoin is a digital scarcity and its 17-year history proves its growing adoption. Lepard described McGlone’s views as “stupid.”
Lepard, recalling that Bitcoin has experienced seven major drops before, argued that the current level of pessimism could actually be a buying opportunity.
According to Lepard, Bitcoin behaves like a “wild beast,” but it rewards those who hold it in the long run. He argued that it’s wrong to say “Bitcoin is over” based on short-term price movements.
CoinRoutes CEO Dave Weisberger approached the debate from a more structural perspective. Weisberger stated that there is no middle ground for Bitcoin; it will either fail or become “the gold of the under-40 generation,” rising many times above its current price.
He predicted that in a future liquidity crisis, Bitcoin could trigger a “hate rally,” and people would get back on the bandwagon out of fear (FOMO).
*This is not investment advice.
