Mike McGlone, a Bloomberg strategist, has cautioned that June 2023 will be a challenging period for bitcoin.
He expects that investors will be unlikely to lend significant support to the cryptocurrency during the summer months.
Moreover, the analyst cautioned that a strong downturn of the Bloomberg Galaxy Crypto composite index—which tracks the performance of top digital currencies—is probable.
In his investor note, McGlone warned of a bearish trend over the upcoming months.
He attributes this potential trend to a waning of speculation activity by stock market investors and an inability to attract both short-term and long-term investors.
McGlone’s warning was further strengthened by the decrease in demand of Chinese commodities during May, and if the high-tech manufacturing sector experiences a slowdown during June and July, then the Nasdaq index could experience stagnation.
Finally, the Federal Reserve’s June decision could also determine business activity, as a further discount rate hike could dampen operation.