Bitcoin (BTC) at $20,000 ? Demand for BlackRock ETFs could push the asset lower

The price of Bitcoin recently soared following a series of events triggered by BlackRock’s ETF request. Some analysts believe this marks the beginning of a bull run for the flagship cryptocurrency. However, one of them remains cautious about this prospect. Here’s why.

Bitcoin could fall to $20,000

About ten days ago, asset manager BlackRock pushed the price of Bitcoin higher, directly influenced by the demand for a Bitcoin ETF filed with the SEC. This procedure was further supported by similar instances from other major financial groups.

Many analysts considered these trends as a set of circumstances leading to a sustained surge in the price of Bitcoin. However, this projection is not shared by Mike McGlone, senior analyst at Bloomberg.

Regarding the events surrounding BlackRock’s Bitcoin ETF request, McGlone has a firm opinion. He does not believe that they will cause the bullish trend in the Bitcoin price attributed to them.

In fact, the expert sees the current momentum of the leading cryptocurrency significantly faltering. According to him, the situation will be such that BTC will experience a resounding crash, bringing its valuation back to around $20,000.

Bitcoin $20,000 or $40,000? Facing the #Fed, Recession, Nasdaq – Potential launch of US ETFs won't shield #Bitcoin from facing its first US #recession, a potential equity bear market and vigilant central banks. Lessons of risk-assets vs. negative liquidity & economic contraction pic.twitter.com/plM5c5ihsg

— Mike McGlone (@mikemcglone11) June 23, 2023

This bearish projection is not so much related to BlackRock’s Bitcoin ETF request itself. Regarding the approval of a Bitcoin ETF, McGlone believes it’s only a matter of time.

The analyst nonetheless foresees a further collapse of the flagship crypto, due to the current ups and downs of the financial market. In his opinion, the BTC price could be affected by a long season of falling share prices.

The situation will go on, he believes, with a potential tightening of vigilance by the US Federal Reserve (Fed) regarding the crypto market. A situation which, reinforced by fears of a recession in the US economy, could pose a real challenge for bitcoin in particular.

Mike McGlone isn’t the only analyst to be wary of BTC’s upside potential. In the wake of the announcement of BlackRock’s Bitcoin ETF application, Peter Schiff expressed similar concerns.