Mike McGlone, senior macro strategist at Bloomberg Intelligence, spoke about the state of Bitcoin after a tumultuous weekend. He believes that Bitcoin can accelerate the decline of risk assets, which shows that the impact of cryptocurrencies is spreading. Additionally, Bitcoin could hit lower lows if the worst is not over yet.
The expert comments come at a time when the bitcoin network is experiencing unusual congestion, which was prompted by Ordinals.
Bitcoin could slow the decline in risk assets –
If the worst isn’t over for risky assets, #bitcoin Likely to lead the decline. pic.twitter.com/UlEVjCEKwr
— Mike McGlone (@mikemcglone11) May 8, 2023
This congestion caused problems for several exchanges, with Binance having to suspend trading for about 1.5 hours. However, the security sensitivity of the Bitcoin network has reignited confidence in the success of smart contracts on the blockchain. The RSK infrastructure framework and other protocols are supporting this new story.
While bitcoin is up around 70% this year, McGlone thinks it could be due to a systemic recovery amid a broader bear market. Bitcoin had an extremely volatile and volatile weekend, with its current price at $27,637, down 2.1% over the past 24 hours. Sentiment around bitcoin has cooled as network congestion typically keeps traders away from the protocol.
However, bitcoin’s resilience makes it stronger than most other risk assets, and many traders see it as a harbinger of easing congestion. Since the beginning of the year, the growth trend of the crypto ecosystem relative to the mainstream technology industry has been impressive, and Bitcoin’s influence is also expanding.
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according to Kyptos