The party across global market might be coming to an end with Bitcoin positioned to be one of the assets with the potential to come on top. The shift in the U.S. Federal Reserve monetary policy will ripple across the stock market as interest rates spike and they reverse their asset purchase program.<\/p>\n
Related Reading | TA: Bitcoin Reaches Key Juncture, Why Recovery Won\u2019t Be Easy<\/a> At least, that\u2019s how Mike McGlone, Senior Commodity Strategist for Bloomberg Intelligence views it. In a recent interview<\/a> with Scott Melker\u2019s \u201cThe Wolf Of All Streets\u201d podcast, McGlone talked about Bitcoin as a risk-on asset, inflation, and the potential correction that will hit markets because of the change in FED policy.<\/p>\n The expert reminded investor of the old adagio \u201cDon\u2019t Fight the Fed\u201d which in the current macro-environment could translate to \u201cdon\u2019t long risk assets\u201d. For Bitcoin, this shift could lead it to transform from a risk on to a risk off asset.<\/p>\n McGlone said the following on the financial institution\u2019s coming policies to decrease inflation, sitting at its higher levels in 40 years, and what it could mean for Bitcoin in the long run:<\/p>\n (\u2026) the lesson I learned about the FED, what I think is happening in this case, is that will job on until the market does their job for them or they have to keep raising rates until markets go backwards, which mean the stock market (\u2026). I think the game is over (for stocks). They (the FED) will be restraining until markets tell them to stop, but I think Bitcoin will come up better off.<\/p><\/blockquote>\n In that sense, the expert predicted a massive 10% to 20% correction in the stock market which would result in a 1:1 correlation event with risk assets. This event\u2019s impact on BTC\u2019s price could be short live, as it could for Ethereum (ETH), but the altcoins sectors might be heavily hit with some of the latest popular cryptocurrencies returning to their previous lows.<\/p>\n On the alleged correlation between Bitcoin and the stock market, McGlone claimed there is insufficient data to support this theory. The benchmark crypto, the expert said, has only been part of the mainstream for a few years.<\/p>\n McGlone pointed out that Bitcoin (BTC) is one of the few assets with strong fundamentals, which are only getting stronger. The crypto asset\u2019s supply is on a sustain decline, with a rising demand, and a reduction in volatility, \u201cthere is not too many asset that can say that\u201d.<\/p>\n Crypto dollars – #Crypto<\/a> assets exemplify global free-market capitalism, and a top winner has been the dollar. Mainstays #Bitcoin<\/a>, #Ethereum<\/a> and crypto dollars are poised to stay atop the ecosystem vs. about 16,000 rivals jockeying for speculative leadership pic.twitter.com\/rmqfs62ByA<\/a><\/p>\n — Mike McGlone (@mikemcglone11) January 16, 2022<\/a><\/p><\/blockquote>\n
\n<\/strong><\/p>\nWhat Happened To The Bitcoin Bull-run?<\/h2>\n
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