Bitcoin surges more than 7%, near all-time high, Ledn CIO John Glover warns of potential correction

Bitcoin (BTC) price has experienced a significant surge over the past 24 hours, indicating a bullish trend in the cryptocurrency market. Bitcoin surged more than 7% to $67,449.00, closer to its previous all-time high.

Amid the surge in Bitcoin (BTC), seasoned financial experts are weighing in on analysis. among them, John GloverChief Investment Officer (CIO) january The former managing director of Barclays offers a critical perspective, drawing parallels between the current market euphoria and the previous rally that saw Bitcoin trading around $65,000.

Glover notes that while many attribute the post-November 2021 sell-off and the April 2021 sell-off to market manipulation by “bad players,” he believes the root cause is more systemic.

According to him, the real problem was that investors were over-leveraged and had unrealistic expectations about the Bitcoin price trajectory, expecting it to be smooth sailing to $100,000 and above.

He argues that we could see a similar scenario unfolding as the market potentially undergoes a correction.

Despite the optimism that typically accompanies top market performances, Glover warns that the current rally may not be as sustainable as some investors hope.

He predicts possible corrections that could be seen. Bitcoin’s value will adjust back to the low-to-mid $40,000 range. In the next few weeks.

Glover acknowledged his previous prediction that the rally would peak in the mid-to-high $50,000 region and acknowledged that the market has exceeded his expectations. In his view, this overextension represents a “peak blowout” and suggests that current price levels may be inflated beyond sustainable support.

Glover’s insights are particularly noteworthy given his extensive background in FX, derivatives trading and institutional risk management spanning over 20 years.

His analysis serves as a warning to investors, reminding them of the importance of maintaining realistic expectations and preparing for potential market corrections.

What caused the Bitcoin price surge in the last 24 hours?

Several key factors contributed to the Bitcoin price surge over the past 24 hours. First, CNBC’s Jim Cramer provides an interesting perspective on the forces that are pushing the world’s leading cryptocurrency to new heights.

As Bitcoin has reached all-time highs since November 2021, many have pointed to surging demand from the introduction of spot Bitcoin ETFs and anticipation surrounding the halving event scheduled for April as key drivers of the rally. But Cramer offers a different perspective during an appearance on CNBC’s “Squawk On The Street.”

Initially following the common belief that ETFs were behind Bitcoin’s rise, Cramer has since revised his position. He offers a deeper, more fundamental reason for the appeal of cryptocurrencies. “At first we thought Bitcoin’s rise was due to ETFs,” Cramer said. “I think people are saying, ‘You know what, I don’t trust this fiat currency.’”

Cramer assumes that Bitcoin is increasingly viewed as a diversification strategy, acting as a hedge against the U.S. dollar and other fiat currencies. Unlike fiat currencies, which derive their value from government decrees rather than physical goods, Bitcoin offers an alternative that some investors find more reliable in the face of economic uncertainty.

Second, considerable institutional interest played a role. The latest news comes from MicroStrategy, a major player in the corporate investing space. MicroStrategy announced plans to raise $600 million through convertible notes to buy more Bitcoin. This move not only demonstrates strong institutional trust in Bitcoin, but also signals to the market that large players are doubling down on their investments in the cryptocurrency.

Additionally, the JTC Network’s innovative legal instrument, WhiteBIT’s listing of Bitcoin forks, connects the digital asset with a formal court system, potentially enhancing Bitcoin’s legal and regulatory environment. These developments may have contributed to the positive market sentiment surrounding Bitcoin.

Also Read: 84% of Crypto Investors Predict Bitcoin Halving Will Drive BTC Price Beyond Previous All-Time Highs

Bitcoin’s Rebound and Realism: Navigating the Highs and Heeding the Warnings

As Bitcoin (BTC) begins another week on a very positive note, the rally has reignited discussion about Bitcoin’s potential to reach new peaks.

But the cautious perspective offered by John Glover adds realism to the conversation. The mixed conclusion from the current market rally and Glover’s warning is one of cautious optimism. On the one hand, the factors driving Bitcoin’s recent surge, including institutional investment, the cryptocurrency’s growing utility, and positive market sentiment, suggest that the digital currency’s upward trajectory may continue in the near term. These factors highlight the growing confidence in Bitcoin as a viable investment and its potential for further integration into the global financial system.

On the other hand, Glover’s reminder of the risks associated with excess excess and speculative bubbles serves as a prudent warning to investors. The possibility of a market correction driven by the same factors that caused past recessions cannot be dismissed lightly. This highlights the importance of risk management, diversification, and maintaining realistic expectations when investing in volatile markets such as cryptocurrencies.

Also Read: Why Bitcoin has surged over 23% in the last 3 days and what’s next?