Bloomberg Analyst Issues Warning, Says Coming Months Likely to Get “Ugly” for Bitcoin and Cryptocurrencies
Mike McGlone, senior macro strategist at Bloomberg Intelligence, says the second half of the year could be bearish for Bitcoin (BTC) and the rest of the crypto markets.
McGlone says risky assets like stocks and cryptocurrencies could become cheaper in the coming months as he believes an economic recession is looming.
According to the macro strategist, the Federal Reserve is still on track to hike interest rates, which he says could negatively impact the performance of Bitcoin and other crypto assets.
“Risk assets can become cheap in recessions. The cat-and-mouse game between the rising stock market and vigilant central banks could pose a hindrance to risky assets. Cryptos are among the riskiest, and the Bloomberg Galaxy Crypto Index (BGCI)’s inability to hold above its 2018 peak in 2023 may have a good reason: the Fed is still tightening.”
The BGCI tracks the performance of the largest crypto assets traded in USD.
McGlone also says the Bloomberg Economics team is predicting an “ugly” second half for cryptos and stocks
“Our chart shows a rare divergence: the Nasdaq 100 Stock Index breaks higher and the BGCI falls in the second quarter.
Federal funds futures in one year (FF13) are a measure of liquidity. Adding rising rate hike expectations to a rising stock market could result in a cap on crypto prices.
The BGCI is up about 50% and the Nasdaq is up 30% as of June 1, 2023, which could shift the bias towards what is typical in recessions: risky assets can go cheap.”
Source: Mike McGlone/TwitterDon’t miss a thing – Subscribe to receive crypto email alerts straight to your inbox
Check the price action
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
Check out the latest headlines
 
Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should conduct their due diligence before making any risky investments in Bitcoin, cryptocurrencies or digital assets. Please note that you transfer and trade at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Tithi Luadthong
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.