Bloomberg analyst calls the conditions for the decline of BTC and ETH rates
The US Federal Reserve System’s actions may contribute to this
17.04.2023 - 16:00
191
2 min
0
Bloomberg Intelligence senior macro strategist Mike McGlone is warning Bitcoin (BTC) and Ethereum (ETH) bulls that crypto and risk assets may be in for a correction.
McGlone shares a graphic with his Twitter following comparing ETH/BTC, the NASDAQ and the Federal Reserve money supply.
According to the analyst, the ETH/BTC pair may be acting as a leading indicator for risk assets, suggesting an incoming correction in the stock market and perhaps crypto as well.
Source: Mike McGlone/Twitter
McGlone says that markets may be adjusting to a developing period of disinflation brought on by the harsh reversal in monetary policy from the Federal Reserve.
“Don’t Blame $2,000 Ethereum, $30,000 Bitcoin. If risk assets peak, markets may be in early the days of adjusting to disinflation, which is normal in recessions, but the Federal Reserve may never loosen with the ease it has in the past. Enduring deflation could be reciprocal”
Source: Mike McGlone/Twitter
In a recent interview with Yahoo Finance, the Bloomberg analyst says that gold will likely be one of the best performing assets in the deflationary recession that he’s forecasting.
“I think it is pulling back a little today, but I think it’s inevitable that gold gets above this $2,000 an ounce level and never looks back. And the key catalyst is the stock market potentially rolling over…
So I see this as just the catalyst for gold to take off. It’s one of the few commodities I’m really bullish on because everything’s starting to tilt downward towards deflationary trends.”
This material is taken from the website https://dailyhodl.com.
Useful material?
Technologies
The new mechanism has already made it possible to calculate over tens of millions of fraudulent addresses
May 16, 2024
Incidents
The amount of damage amounted to $25 million in cryptocurrencies
May 16, 2024
Market
FTX customers will be compensated in cash, unlike Mt. Gox and Gemini customers who will receive cryptocurrencies
May 16, 2024
Technologies
It is available to crypto wallet users worldwide as an additional feature
May 15, 2024
Market
The ex-official known for his initiatives to explore the potential of blockchain in the financial system has joined the board of directors of a fintech company
May 14, 2024
Business
Earlier, Brad Garlinghouse claimed apparent harassment of the company by the US authorities
May 14, 2024