Mike McGlone, Bloomberg analyst, said that due to the Federal Reserve policy the market will see a one-fifth drop. He also stated that Bitcoin (BTC) will soon no longer be a risky asset and investors will need to prepare for another price adjustment. As Bitcoin struggles in 2022, those hoping for a dramatic return will be disappointed with McGrone’s medium-term forecasts.The United Federal Reserve will almost guarantee to end the limited profits from stocks so the correlated cryptocurrencies will also suffer. The number one theme I’ve been using for months is ‘Don’t fight the Fed’, he began. As a result, the outlook for risky assets is far less attractive in the short term, as the Fed is trying to curb inflation and significantly reduce asset purchases.
However, according to McGlone, there is a silver lining regarding the unique charm“I believe Bitcoin will be better after a period of political turmoil.” of Bitcoin. “I think it’s moving from risk-on to risk-off assets,” he continued.
Historically known for his bullish view on Bitcoin, McGrone is not alone in his vigilance. As Cointelegraph reported, even Bitcoin traders are preparing for the next test time, but analysts’ views were repeated earlier this month by the former CEO of the derivative trading platform BitMEX. “The loose financial situation in the United States has definitely affected the sharp rise in prices (albeit with a few months delay),” he wrote about the Fed’s balance sheet in a blog post on politics and Bitcoin.
