Bloomberg Intelligence analyst Mike McGlone, known for his accurate Bitcoin (BTC) forecasts, believes that the top two cryptocurrencies by market cap could deliver huge returns as all stock markets continue to drop.
Bloomberg strategist says Bitcoin and Ethereum will outperform stocks
You can check out the strategist’s accurate predictions in this article. In a recent interview, Mike McGlone says that the Federal Reserve’s rate hikes are more harmful to the US stock market in the long run than well-established cryptocurrencies like Bitcoin (BTC) and Ethereum:
The most important thing to note is that the stock market continues to decline. If it does, which is likely because the Fed wants it to go down to reduce inflation, Bitcoin and Ethereum will also drop, but they will come to the fore. Overall, the volatility of cryptocurrencies as a new market, especially Bitcoin, continued to drop against the stock market. That’s what happened when Amazon first came out. Volatility in 2009 was the same as Bitcoin is now.
“Investors look forward to the future”
According to McGlone, cryptocurrencies, Amazon and other industrial revolutions and the 2000s and 2010s on the same level as the winners of the years. On the trade-off of investors to crypto, the analyst says:
Do you really want to lose this revolution? Investors look forward to the future. This is exactly what I see. There are some sell offers on the exchange and below on cryptos like Bitcoin and Ethereum.
Bitcoin (BTC) has rebounded from a weekly low of around $27,000 at the time of writing, after dropping from $36,000 a week ago. It is currently trading at $30,429 and is in the green above 4.5%.
Despite Bitcoin losing $30,000, McGlone points out that it is not the only asset class to decline
The cryptocurrency market has seen serious money outflows since last week . Its total market capitalization fell from $1.5 trillion to $1.2 trillion. According to McGlone, this environment can bring cryptocurrencies to the fore:
With any risk asset, it falls with the tide. What happened to the S&P 500 this week? It fell below 4,000 for a short time. Both Bitcoin and the S&P 500 have returned to their 100-week moving averages for the first time in more than two years…Bitcoin, the most bullish asset in the past five, 10 years, will bounce back with the Fed’s punch… More likely to come forward.
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