- The Fed’s position on risk-on assets is to wipe out the most speculative assets such as memecoins.
- Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, predicts lower volatility for stock markets will favor Bitcoin and Ethereum.
Crypto markets have been hit hard since the beginning of May, but the bearishness has only lasted for a limited time and there are signs that the recession is nearing an end, or at least easing.recently interview Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, believes the S&P 500 will come out on top even if early crypto markets suffer alongside the S&P 500 due to its relationship with Yahoo Finance. expressed his belief.
Fed action against inflation fueled recent crash
McGlone is a current stock performance The cryptocurrency market was sparked by the Federal Reserve’s fight against inflation. Bloomberg strategists expect this trend to continue. He observed that crypto-assets were some of the riskiest assets, with the most speculative assets being wiped out, including memetic coins such as Doge.
“The Fed is selling calls. Some were crypto. So what we’re doing is finally wiping out things like Dogecoin and Shiba Inu.
He cites use cases such as NFTs and Ethereum’s involvement in tokenization, saying that the tokens that survive this purge are those with infrastructure and products that have been proven to actually be used by people. I added that there is. In line with this, he predicted that Bitcoin and Ethereum would eventually come out stronger.
McGlone predicted increased user engagement with the two tokens, explaining why investors don’t want to miss the revolution.The revolution in question was also tied to the fact that the now-favorable Amazon stock had similar volatility levels to Bitcoin today in 2009. Bitcoin’s 260-day volatility on May 13 was standing 70%, about the same as Amazon stock in 2009.
“…Keep in mind if the stock market continues to fall…Bitcoin and Ethereum will fall, but they will come out first. “Continued volatility in assets, especially Bitcoin, fell against the stock market. A commodities strategist told Yahoo Finance.
Overall, McGlone believes Bitcoin will gain the upper hand after the Fed deals with inflation as major crypto tokens become global digital collateral.
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