The new week started with a sharp strengthening of bitcoin (BTC). The day before, it rose to its highest level since August and reached a local peak around $28,400.
However, already in the evening traders switched to profit taking and BTC fell below $28,000.
On the night of Tuesday, October 3, the leading cryptocurrency fell in price to $27,838. Ether (ETH) fell to $1661.96.
Bloomberg strategist Mike McGlone believes a bitcoin pullback was inevitable.
Pressure always builds when a digital currency aggressively adds value. Increased volatility is accompanied by increased activity of sellers who want to capitalize on the rise of the asset.
McGlone doubts that bitcoin will be able to reach $30,000 in the near future. The main factor preventing further growth of BTC is the tough policy of the U.S. authorities.
Repressive actions of the Securities and Exchange Commission (SEC) scare institutional investors, and they refrain from entering the cryptosphere. Risks of global recession are also contributing to the weakening of risk appetite.
In such a situation, stock markets will not be able to grow, emphasized the Bloomberg strategist and added that digital currencies will also be affected.