Mike McGlone, Bloomberg’s chief commodities strategist, tweeted about the relationship between the Bitcoin market, risk assets, and inflation.
Mike McGlone tweeted:
#Bitcoin indicating a rough week ahead – Inflation Unlikely to Drop Unless Risk Assets Do:
Most assets are subject to the ebbing tide in 2022, on the inevitable reversion of the greatest inflation measures in four decades, but this year may mark another milestone for Bitcoin. pic.twitter.com/drnXyYea4F— Mike McGlone (@mikemcglone11) February 20, 2022
The short-term view for Bitcoin indicates market volatility, and the leading cryptocurrency is on track to set a new trend. In reference to the Fed’s tightening of financial policy, McGlone said that the bulk of assets in the market would react to the “ebbing tide” in 2022.
McGlone previously stated that Bitcoin had “divergent strength” when compared to equities. A continuing theme in Bloomberg’s February Crypto Market Outlook, the strategist is also positive on Ethereum and stablecoins, which he refers to as “crypto dollars.” In the report, Bloomberg’s team of analysts predicted that Bitcoin’s next big price milestone would reach $100,000.
Prices in the cryptocurrency market have been volatile due to expectations of a Fed rate hike.
Analysts estimate that the Fed may hike interest rates as many as six times this year in order to significantly reduce the circulating supply of money. The goal is to reverse the inflation caused by stimulus programmes during the COVID pandemic.
