Senior macro analyst at Bloomberg Intelligence, Mike McGlone, ahead of today's consumer price report, shared his outlook on financial markets, and Bitcoin (BTC) in particular. Moreover, McGlone has unveiled what he believes may be the most beneficial strategy in the current state of the crypto market.
Arman ShirinyanThus, according to the macro strategist, in the current situation, those who buy and hold are more likely to benefit, as opposed to those who speculate and leverage. The analyst cites rising volatility, typical in bear markets, as the reason.
Bitcoin, Nasdaq and the Fed
As for current market conditions around Bitcoin, despite a strong rebound at the start of 2023, McGlone still sees the global economy as unfavorable. When the Nasdaq 100, one of the key U.S. stock market indices, was up 10% by mid-February, Bitcoin was up 30%. A similar performance can be expected in the opposite direction when the stock market bottoms, the analyst notes.
Yuri MolchanRight now, however, both indexes, if we consider BTC as a benchmark for the crypto market, are near the level where the U.S. Fed has eased policy three times in history. If the regulator continues to tighten despite the risk of recession, then rising financial markets, and especially cryptocurrencies as the riskiest, will face a headwind, McGlone concluded.
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U.Today Editorial Team
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