A potential “global economic reset” could cause the price of Bitcoin (BTC) to drop to levels not seen since mid-2020, says Bloomberg Intelligence senior macro strategist Mike McGlone. In an interview with Kitco News on August 25, McGlone warns that troubling economic indicators from China indicate a slowdown that could trigger the next major global financial crisis.
McGlone believes that if this economic disaster occurs, the price of Bitcoin could plummet to $10,000. He points out that Bitcoin was hovering around that price before the big pump of liquidity. Despite the increase in on-chain metrics, McGlone sees a possibility of Bitcoin returning to that level if the global economic reset happens.
However, McGlone still considers Bitcoin to be a leading indicator for most risk assets. Even if the price drops to $10,000, he asserts that it is still likely to be the best-performing asset ever, which he sees as a problem. He attributes Bitcoin’s previous performance to a zero-interest rate environment, but he hopes it will reach $200,000 unless the global economic reset occurs.
In other news, Aptos Network, a layer-1 blockchain, has announced a partnership with Daehong Communications, a marketing business owned by Lotte Group. Aptos will provide the back end for “Super Jelly,” a reward system tied to Daehong’s nonfungible token (NFT) collection called Bellygom and its upcoming online virtual world, Bellyland. The partnership is seen as a starting point, and Aptos may explore further Web3 innovation across various areas of the Lotte business network.
Meanwhile, Ethereum’s layer-2 blockchains have scaled the layer-1 network by over five times in the past week. According to L2Beat data, the scaling factor grew from under 1 to 5.2 times in less than a year. YouTuber Patrick Scott highlights this significant change, stating that in the future, the comparison won’t even make sense as Layer 2s will process many more transactions.
Layer 2 solutions such as Polygon and Coinbase’s Base bundle thousands of transactions for processing on Ethereum, offering higher transactions per second and lower fees compared to the Ethereum network. As per L2Beat, Arbitrum has the largest market share of Layer 2s with nearly 56%, followed by Optimisims OP Mainnet at 26%, and zkSync Era at 4.2%.
Additionally, blockchain sleuth ZachXBT raises concerns about copycat verified accounts on Twitter, which are posing as legitimate crypto projects and posting phishing links. ZachXBT has shared an image of 12 X-verified organizations created in the past two days, including impersonations of known projects like Lido, Friend.tech, Synthetix, and ApeCoin (APE). The proliferation of these fake accounts has raised questions about the effectiveness of Twitter’s verification system.
Twitter recently adopted a paid verification system, allowing businesses to pay $1,000 a month for a gold checkmark. However, it is unclear how these fake accounts are increasing in numbers. ZachXBT suggests that the alleged scammers are buying already-verified accounts on Telegram. This situation has created a new black market for accounts, making it difficult to report and take down these phishing accounts easily.
Overall, the potential global economic reset poses risks for the price of Bitcoin, Ethereum’s layer-2 blockchains continue to scale, and the presence of copycat verified accounts on Twitter is a growing concern within the crypto community.