Bloomberg analyst predicted bitcoin and Ethereum to rise amid the Fed’s actions

According to Mike McGlone, the regulator’s interest rate hike will hurt stock markets more in the long run than major cryptocurrencies

16.05.2022 - 15:25

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2 min

What’s new? Bloomberg Intelligence senior analyst Mike McGlone believes that only bitcoin and Ethereum will benefit in the long run from the US Federal Reserve System’s (Fed) policy tightening. He added that temporary declines in cryptocurrency rates amid a falling stock market are the norm. McGlone told about this in a podcast on Yahoo Finance.

Podcast on Yahoo Finance

What else did McGlone say? According to the analyst, the Fed’s interest rate hike will hurt stock markets more than major cryptocurrencies. McGlone believes that the stock market will continue to fall as the Fed needs to reduce inflation. As for bitcoin and Ethereum, they “will go down, but they’ll come out ahead.” He added:

“Investors are looking forward to the future. Do you really want to miss out on this revolution? A little bit of selling offers in the stock market and bids below in things like Bitcoin and Ethereum.”

What events happened before? Well-known crypto analyst Benjamin Cowen predicted that bitcoin would trade without a clear direction in the coming months. In his view, the asset would experience “fairly choppy months ahead” as the Fed intensified its efforts to fight inflation.

Raoul Pal, the founder of Real Vision TV, believes that in May cryptocurrencies will face a “nasty recession” and “liquidation write large.” Pal said that the drop in global market demand is because of the Fed’s tighter monetary policy. Although the crypto market is in “full panic mode,” the analyst called cryptocurrencies a “long-term investment.”

Galaxy Digital CEO Mike Novogratz believes that the growth of cryptocurrencies will be facilitated by the US Fed’s policy easing the industry’s regulation.

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