Mike McGlone "Possibility of Bitcoin at $50,000 next year… Investor sentiment remains a burden"

An analysis suggested that Bitcoin (BTC) could undergo a correction to around $50,000 next year.

On the 24th, according to crypto-focused media DL News, Bloomberg strategist Mike McGlone said in response to the question "Which will Bitcoin be closer to next year, $50,000 or $150,000?" that "at present, the weight is toward $50,000." He predicted that Bitcoin could face additional downward pressure next year amid macro uncertainty and a burdened risk-asset sentiment.

He explained, "Factors such as rising gold prices, oil price adjustments, and increased stock market volatility have created an environment in which investment capital is unlikely to immediately return to high-risk assets."

This month, Bitcoin has been trading around the mid-$80,000 range. It is reported that corporate buying of Bitcoin has also slowed since about $20 billion worth of positions were liquidated in selling pressure in October. Bitcoin-based spot exchange-traded products (ETFs) recorded net outflows of more than $3.5 billion this month alone, the largest since February.

Controversy over AI being overvalued and volatility in tech stocks were also identified as factors affecting Bitcoin's trajectory. Despite Nvidia's earnings announcement, U.S. markets showed significant volatility, leading some investors to adjust their allocations to risk assets.

The interest rate path of the U.S. Federal Reserve (Fed) is also increasing market uncertainty. New York Fed president John Williams said "there is room for easing in the short term," but other officials have remained cautious, strengthening a wait-and-see sentiment ahead of the year-end FOMC.

The outlet reported, "The prevailing view is that Bitcoin's direction will be re-determined by the year-end Federal Open Market Committee (FOMC) regular meeting and stock market movements."