BTC/USD 1-week candle chart (Bitstamp). Source: TradingViewThe Fed fights its balance sheet
McGlone, famous for his bullish takes on Bitcoin in the past, is meanwhile far from alone in his caution.
Related: Analysts warn that Bitcoin could dip to $38K 'before an eventual breakout'
As Cointelegraph reported, even Bitcoin traders themselves are bracing for testing times ahead, while the analyst's views were echoed earlier this month by Arthur Hayes, ex-CEO of derivatives trading platform BitMEX.
“The loose US monetary conditions definitely influenced the meteoric rise in price (albeit a few months delayed),” he wrote about the Fed's balance sheet in a blog post on policy and Bitcoin.
“Since M2% growth stalled, Bitcoin has traded sideways. If M2 is set to hit 0% — and possibly even go negative — in short order, the natural conclusion is that Bitcoin (absent any asymptotic growth in the number of users or transactions processed via the network) is likely to go much lower as well.”
An accompanying chart underscored the implications of a much more conservative atmosphere.