- McGlone thinks it’s totally wrong for the market to think the Fed would lower interest rates.
- If the expert is correct, long Treasury bonds and gold will prosper in this climate.
Mike McGlone, a senior commodity analyst at Bloomberg, predicts that Bitcoin would underperform the stock market in 2024 when adjusted for risk, while gold could emerge victorious.
In spite of the optimistic talk around the impending Bitcoin halving and the recent approval of spot Bitcoin ETF, the biggest cryptocurrency may not be able to hit new all-time highs in 2024 due to macroeconomic issues.
Specifically, McGlone thinks it’s totally wrong for the market to think the Fed would lower interest rates, which normally boosts risk-on assets like Bitcoin.
Dramatic Change in Momentum
He made the argument that the Fed would not loosen as much as it has in the past due to the inflation it caused by easing too much. The stock market, according to McGlone’s prediction, could fall this year when the United States economy enters a recession. In this kind of setting, the leading indicator for risk assets, Bitcoin, is anticipated to do poorly.
If the expert is correct, long Treasury bonds and gold will be the assets that prosper in this climate. Bears now have the upper hand in the Bitcoin market, which is seeing a dramatic change in momentum due to the increase in selling pressure. A key player propelling this trend is the renowned asset manager Grayscale, which is well-known for managing the Grayscale Bitcoin Trust (GBTC).
Bitcoin prices briefly rose due to early enthusiasm around spot Bitcoin ETFs, but then fell below $40,000 in the days that followed. The total market capitalization of the cryptocurrency market fell 2.3% as a whole, while ETF issuers were in a cutthroat race to entice investors with cheaper fees and promotional incentives.
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