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Mike McGlone, the senior commodity strategist at Bitcoin Intelligence, has returned to the X platform after a break, posting a tweet about Bitcoin, the Federal Reserve and inflation. He believes that a further Bitcoin price increase would indicate one thing, which the Fed would definitely not like.
Meanwhile, BTC continues to drop and has shed slightly more than a thousand dollars over the past few hours.
Federal Reserve may react if Bitcoin rises: McGlone
Bloomberg’s commodity expert has called the current rise of Bitcoin and gold prices “unsustainable.” Indeed, since last Friday, the digital gold has gone down by 6%, falling from the $119,111 local high to the $111,980 level where it is trading at press time.
Mike McGlone has drawn the community’s attention to the rise in equities, Treasury bond yields, Bitcoin and gold that has taken place simultaneously. He believes this rally is shaky and unstable, and it was “due for some volatility post-summer doldrums.”
The expert explained that as these risk assets, including Bitcoin, continue to ascend, it may lead to inflation and Treasury bonds soaring too. In return, this may trigger the Federal Reserve and make it implement monetary tightening rather than easing and raise interest rates, contrary to the constant demands of President Donald Trump to do the opposite this year.
Strategy acquires additional Bitcoin
This week, Michael Saylor’s company, Strategy, announced yet another substantial Bitcoin acquisition. According to the tweet posted by Saylor on Monday, the Bitcoin treasury company purchased 430 Bitcoins worth approximately $51.4 million in fiat.
The funds for this and the previous BTC purchases were raised through Strategy’s financial tools — MSTR, STRC, STRK, STRF and STRD. This accumulation boosted the company’s total holdings to a staggering 629,376 BTC, valued at more than $70 billion at the current market prices.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team