Bloomberg Intelligence’s senior macro strategist believes that danger property like shares must crash earlier than Bitcoin (BTC) jumps again to life.
In a brand new interview with crypto dealer Scott Melker, Mike McGlone says Bitcoin is unlikely to take flight so long as the U.S. Federal Reserve retains the cash printer off.
“Right here’s what I feel the indication of the dangerous efficiency is – when you take a look at the overlay of Bitcoin versus [the Nasdaq], it sometimes outperforms when the liquidity pump is on, and it sometimes underperforms when the liquidity pump is off.
Related historical past is extra related as a result of it’s such a younger asset, and the purpose is that the liquidity pump is clearly off, and it’s manner off. I simply checked out Fed fund futures – in a single yr they’re proper round 5%. That reveals no hope of getting this liquidity pump to go on.”
McGlone additionally tells his 59,800 followers on the social media platform X that the Federal Reserve might reverse its hawkish stance if the inventory market melts down.
“Right here’s a possible lose-lose. It’s unlikely the Fed will likely be including liquidity anytime quickly attributable to sticky inflation metrics. A high catalyst to set off a pivot could be a reversal in what has helped buoy charges this yr – the resilient inventory market.”
The Bloomberg analyst highlights that Bitcoin is up 26,000x in 12 years and that BTC would nonetheless be one of many best-performing property even when it loses over 63% of its present worth.
“Heading again towards $10,000 would nonetheless keep Bitcoin’s unprecedented efficiency.”
At time of writing, Bitcoin is value $27,711 and is up over 6% within the final 24 hours.
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