Bloomberg Strategist: Stock Market Crash Needed for Bitcoin Recovery
Bloomberg Intelligence’s senior macro strategist, Mike McGlone, believes that Bitcoin’s resurgence is contingent on a crash in risk assets, such as stocks. In an interview with crypto trader Scott Melker, McGlone asserts that Bitcoin’s performance is closely tied to the liquidity provided by the U.S. Federal Reserve.
Main Key Points:
- Bitcoin typically outperforms when the liquidity pump is on and underperforms when it is off.
- The liquidity pump is currently off, as indicated by Fed fund futures hovering around 5%.
- The Federal Reserve may reconsider its hawkish stance if the stock market experiences a downturn.
- Even if Bitcoin were to lose over 63% of its value, it would still be one of the best-performing assets.
- Bitcoin is currently priced at $27,711, experiencing a 6% increase in the last 24 hours.
Hot Take:
According to Bloomberg’s strategist, Bitcoin’s revival is dependent on a crash in the stock market. While Bitcoin has shown remarkable performance over the years, its future hinges on the actions of the Federal Reserve and the liquidity it provides. Crypto investors should closely monitor the stock market and Federal Reserve developments to anticipate Bitcoin’s next move.
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