Bloomberg analyst Mike McGlone rated bitcoin (BTC).
September 7 in a post on LinkedIn and Twitter McGlone explained that while US Federal Reserve tightening is likely to determine the direction of the stock market, Bitcoin there is still a “wild card” that can break the trenddeclaring:
“Bitcoin is a wild card that’s more ripe to outperform when stocks go down, but is transitory to gold and bonds.”
The raw materials strategist shared more details in a report dated September 7, in which pointed out what Bitcoin was poised for a sharp rebound from the bear market despite “strong headwinds” towards high-risk assets:
“It’s usually only a matter of time before the feds weigh in on the tapering advice, and when they do, bitcoin will be one of the main beneficiaries.”
The report notes that while bitcoin would follow a similar trend to treasuries and gold, Ethereum (ETH) “may have a higher correlation with stocks.”
The Fed’s quantitative tightening comes on the heels of several big rate hikes in 2022.and the latest was a July 27 increased by 75 basis points.
Macros on five charts: Commodity, Commodities, Stocks, Bonds, Bitcoin – #Crude oil could renew a long-term bear market and complement T-bond bulls. #Federal Reserve tightening as global GDP turns negative could help move #promotions listen to bad news and good news. pic.twitter.com/KZEWsZyI8h
— Mike McGlone (@mikemcglone11) in 2022 September 7
Macros on five charts: Oil, Commodities, Stocks, Bonds, Bitcoin. Crude oil could renew a long-term bear market and reignite growth in T-bonds. Fed tightening when global GDP turns negative can help turn stocks into bad news and good news.
While it is not known exactly when the Fed’s quantitative easing will end, some economists have predicted that the tipping point will begin “sometime in 2023.” according to a Bloomberg article published in August.
Quantitative tightening is a contractionary monetary policy tool used by central banks to reduce the money supply and liquidity in the economy, which can reduce costs in markets such as stocks.
But despite Bloomberg’s harsh opinion, other experts believe that bitcoin and stock markets are more correlated than before.
Contributor to Cointelegraph Michaël van de Poppe recently said that there is a correlation between the S&P 500 index and BTC was almost 100 percent.and several IMF economists said they saw a A 10-fold increase in correlation between cryptocurrencies and stock markets in some regions of the world.
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