Bloomberg Analyst Issues Bitcoin Warning, Says BTC Has Hit ‘Exit Signal’ and Could Go Even Lower

Bloomberg Intelligence’s cryp­to mar­ket ana­lyst Jamie Coutts is issu­ing an alert on Bit­coin, warn­ing that BTC is becom­ing vul­ner­a­ble to con­tract­ing glob­al liquidity.

Coutts says on the social media plat­form X that Bit­coin hit the mar­ket “exit sig­nal” around mid-July at a price of $29,500, a lev­el that’s about 11% high­er than cur­rent prices.

“Our trend mod­el is still out of the mar­ket (neg­a­tive) from $29,500.”

Bit­coin is trad­ing at $26,187 at time of writing.

Accord­ing to Coutts, Bit­coin is only like­ly to turn bull­ish when the lev­el of glob­al liq­uid­i­ty expands.

“Mean­while the glob­al liq­uid­i­ty con­trac­tion (mon­ey sup­ply and cen­tral bank bal­ance sheets) has slowed, but is still deeply neg­a­tive. Until this revers­es, Bit­coin is unlike­ly to go high­er. Like­ly lower.”

On the liq­uid­i­ty lev­els in the US, Coutts says,

“And although the US Liq­uid­i­ty index is high­er recent­ly, it’s sim­ply whip­ping around in a side­ways range and there­fore sig­nals are basi­cal­ly noise, unless there is a mean­ing­ful push high­er, which would like­ly only come with a pol­i­cy change from the Fed­er­al Reserve. Not like­ly in the short term.”

The Bloomberg Intel­li­gence ana­lyst says that while the antic­i­pat­ed approval of a spot Bit­coin exchange-trad­ed fund (ETF) in the US could poten­tial­ly be a pos­i­tive cat­a­lyst over the long term for cryp­to mar­kets, demand for dig­i­tal assets from insti­tu­tion­al investors is unlike­ly to be sig­nif­i­cant until liq­uid­i­ty rises.

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