Bitcoin’s climb to the $100,000 mark may have marked a peak rather than a beginning, according to Bloomberg Intelligence analyst Mike McGlone. He suggests that the top cryptocurrency is now facing growing resistance at this level, possibly making it difficult to sustain or surpass in the future.
Following its brief touch of the much-watched milestone, Bitcoin has started to lose momentum. Its performance has now slipped behind gold, which is attracting increased attention from investors seeking safer options.
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As McGlone suggests, investors are now behaving less riskily in the global financial sector. He notes that the renewed strength of gold signals reduced interest in speculative assets like Bitcoin.
He goes on to point out that the boom in the number of cryptocurrencies makes it challenging for Bitcoin. More coins being launched causes investor money to spread across all the tokens, so demand for the primary token goes down.
This oversupply, according to McGlone, contributes to downward pressure on Bitcoin’s valuation. Instead of reinforcing Bitcoin’s dominance, the flood of new tokens may now be undercutting its long-term strength.
Excessive Supply and Weakening Speculation Are Limiting Bitcoin’s Growth
The analyst also points to a fading wave of speculation that once drove Bitcoin’s record rallies. He argues that the appetite for risk-heavy digital assets has declined significantly compared to previous market cycles.
During times of instability, investors prefer gold, which means it surpasses equities and cryptocurrencies. From this trend, investors are less likely to purchase Bitcoin, which may prevent it from moving above $100,000.
Investors used to view six-figure prices as a good place to start, but McGlone’s approach suggests caution. This may now become a major obstacle for digital assets.
With the market full and speculation decreasing, the way for Bitcoin to pass $100,000 is becoming less clear. Now that gold is attracting investors, some analysts expect it will be difficult for Bitcoin to break its record.
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