The current economic climate is quite uncertain at the moment. Not only encryption in a Bitcoin (BTC) Stock markets are faltering, and traditional stock markets have lost their sense of euphoria in recent months. According to Mike McGlone, chief analyst at Bloomberg, this has to do with the policy of the US central bank, the Federal Reserve (Fed).
Bitcoin is the least dangerous
McGlone doesn’t make any bones about it and is mentioned while doing it podcast Many cryptocurrency investors who anticipate significant price increases in the crypto markets in the short term are disappointed. In his view, Fed policy effectively ensured an end to what seemed to be no end… gains.
McGlone’s advice is that one should not go against Federal Reserve policy. The central bank is trying to control spiraling inflation, which is why interest rates are raised and risky assets suddenly become less attractive.
It suggests that there is a positive side to this. Bitcoin can stick to it. According to McGlone, bitcoin has become inherently less risky. So Bitcoin is expected to be a huge advantage during this period of uncertainty as a result of Fed policy.
“This is my prediction: the markets will pull back and we will get a 10%-20% retracement in the stock market. All correlations are the same, and this is how they usually work. Bitcoin will come out better.”
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Mike McGlone isn’t exactly the only analyst who doesn’t expect us to see much in the near future rising You will witness price action in both the crypto markets and the stock market. Also the former CEO of BitMEX crypto exchange, Arthur HayesAnticipate a turbulent period.
According to him, the astronomical price increases for both stocks and cryptocurrencies in the past year were largely the result of prickly monetary policy by central banks. Now that they’ve changed their policy, it’s no surprise to expect prices to react strongly again, according to Hayes.
According to him, Bitcoin could sink even deeper if growth Money supply (m2) It goes to 0%, or until it becomes negative.
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