Mike McGlone, the chief commodity expert at Bloomberg Intelligence, who periodically tweets about top cryptocurrencies – Bitcoin and Ethereum – has published a post about DOGE today.
In that tweet, the commodity strategist revealed a gloomy prospect for the price of the original meme coin and explained his conclusions.
In his tweet, McGlone has once again likened crypto to the biggest bubbles in the history of financial markets. Over the past couple of weeks, he has been drawing parallels between the current situation of Bitcoin and the tech Nasdaq 100 index which crashed in early 2000 after it reached an all-time high of 4,700 points and then rapidly plummeted to 800.
Now, McGlone has mentioned the historic bubbles that emerged in the market in 1929 and 1999, which eventually led to the Great Depression and the dot-com bubble crash. His tweet now suggests that Dogecoin has become part of large market speculation and may face a reversion soon, like risk assets during the aforementioned market bubbles.
McGlone tweeted that the ratio at which gold is trading to Bitcoin is closely mirroring DOGE price movements at the moment. This may indicate that DOGE and other speculative assets (including Bitcoin, according to McGlone’s earlier tweets) may go into a deep decline. Meanwhile, in this case investors are likely to start withdraw funds from Dogecoin and Bitcoin and start putting them into gold.
In the tweets published earlier this month, McGlone predicted that Bitcoin may crash as low as $10,000, also pointing out at the similarities between the dot-com bubble 25 years ago, which resulted in the Nasdaq crash, and a similar bubble forming now for risk and speculative assets, including Bitcoin and US stocks.
As if sharing his thoughts, Ark Invest’s CEO Cathie Wood has recently for the first time has decreased the number of Meta shares in the company’s portfolio.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.