Bloomberg Senior Commodity Strategist Mike McGlone has warned that Bitcoin price needs to stay above $100,000 to protect the crypto market.
In a series of tweets on 24 January, the market analyst said Bitcoin plays a critical role in determining the price of gold and crypto, stressing that the mantra “price must go higher or else” has never been more important.
Bitcoin playing a key role
Historically, Bitcoin and the stock market have always shown a connection. That way, the price of Bitcoin affects the stock market and vice versa in the same direction.
The relationship to the price of gold has even been stronger, but it seems that positive connection no longer holds. According to McGlone, a break below $100,000 for Bitcoin could be a positive thing for the stock market, unlike the pattern in the past.
He further added that the fall of Bitcoin under this key price level will mean a major crash in the rest of the digital assets.
“Number go up” is a crypto mantra that may have shifted to “price must go higher or else” since Trump’s reelection, with implications for #gold. A key question for 2025 that might favor the metal is how much better can things get for #Bitcoin above its $100,000 threshold? My takeaway is crypto prices have to continue rising, because falling would suggest a bubble peak and risk-asset headwinds.“
According to McGlone, Bitcoin’s price has made its upward move drawing strength from Donald Trump’s election as president of the U.S. Although he expects the price to keep going up, things can turn around suddenly with crypto.
State of the market
While the crypto market remains mostly bearish sideways, Bitcoin has started pushing its way upwards as seen in the price breaking above $106,000 at the time of writing this report.
If the trend is sustained, the rest of the market may be rescued eventually, bringing hope to altcoin holders. Meanwhile, a crash in Bitcoin’s dominance may also be good for altcoins according to this analyst.
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