Bloomberg’s Mike McGlone on how Bitcoin can help during fall in traditional stocks’ value | The Financial Express

Bloomberg’s Mike McGlone on how Bitcoin can help during fall in traditional stocks’ value

On the basis of information by Cointelegraph, the commodities strategist, through a September report, stated that Bitcoin is expected to make a comeback from the effects of bear market

Bloomberg’s Mike McGlone on how Bitcoin can help during fall in traditional stocks’ value
Michael van de Poppe, contributor, Cointelegraph, spoke on the correlation between the S&P 500 index and BTC, and how it was making a 100% approach

Mike McGlone, analyst, Bloomberg, has labeled Bitcoin (BTC) as a way to outperform once traditional stocks reaches its lowest value. Through a post on Linkedin and Twitter, McGlone emphasised that while the United States (US) Federal Reserve tightening is expected to determine the direction of the stock market, BTC could result to be a “wildcard” for the trend, as reported by Cointelegraph.

“Bitcoin is a wild card that’s ripe to outperform when stocks bottom, but transitioning to be more like gold and bonds,” McGlone said.

On the basis of information by Cointelegraph, the commodities strategist, through a September report, stated that Bitcoin is expected to make a comeback from the effects of bear market. “It’s a matter of time for the fed funds gauge to flip toward cuts, and when it does, Bitcoin is poised to be a beneficiary,” McGlone stated. The report has anticipated that while BTC is expected to follow a similar trend with regard to treasury bonds and gold, Ethereum is expected to have a higher correlation with stocks. Federal Reserve’s increased quantitative tightening measures have arrived during major interest rate hikes throughout 2022, with the latest surge resulting in a 75 basis points increase. 

Moreover, Cointelegraph noted that while it is yet to be determined when Fed’s quantitative tightening will conclude, certain economists have made the prediction that the endpoint will start sometime in 2023, as per insights from a Bloomberg article published in August. Quantitative tightening is reportedly a contractionary monetary policy whose usage by central banks reduces the level of money supply and liquidity in an economy, to reduce spending across markets such as stocks. Despite Bloomberg’s opinion, other experts have felt that Bitcoin and equity markets have become more correlated than before. Michael van de Poppe, contributor, Cointelegraph, spoke on the correlation between the S&P 500 index and BTC, and how it was making a 100% approach. 

(With insights from Cointelegraph)

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