Bloomberg Analyst Issues Warning, Says Coming Months Likely To Be ‘Ugly’ for Bitcoin and Crypto
Bloomberg Intelligence’s senior macro strategist Mike McGlone says that the second half of the 12 months may very well be bearish for Bitcoin (BTC) and the remainder of the crypto markets.
McGlone says that threat belongings, corresponding to shares and crypto, might get low cost within the coming months as he believes that an financial recession is on the horizon.
In keeping with the macro strategist, the Federal Reserve continues to be on the trail of accelerating rates of interest, which he notes might negatively affect the efficiency of Bitcoin and different crypto belongings.
“Threat belongings can get low cost in recessions. The cat-and-mouse sport between the rallying inventory market and watchful central banks may very well be an impediment for threat belongings. Cryptos are among the many riskiest, and the lack of the Bloomberg Galaxy Crypto Index (BGCI) to maintain above its 2018 excessive in 2023 could also be for an excellent motive: the Fed continues to be tightening.”
The BGCI tracks the efficiency of the biggest crypto belongings traded in USD.
McGlone additionally says that the Bloomberg Economics group is predicting an “ugly” second half for cryptos and equities
“Our graphic exhibits a uncommon divergence, with the Nasdaq 100 Inventory Index breaking increased and the BGCI falling in (Q2).
Federal funds futures in a single 12 months (FF13) are a liquidity gauge, including rising rate-hike expectations to a climbing inventory market might put a ceiling on crypto costs.
The BGCI has rallied in 2023 by about 50% to June 1 and the Nasdaq 30%, which can shift the bias towards what’s typical in recessions: threat belongings can get low cost.”
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