Bloomberg analyst issues warning, says Bitcoin faces massive threat from interest rate hikes and recession
Bloomberg Intelligence Senior Macro Strategist Mike McGlone warns Bitcoin (BTC) traders to avoid fighting the US Federal Reserve.
McGlone warns his 54,500 Twitter followers that BTC still faces major headwinds in Q1 of 2023, primarily the Fed and its agenda to tame inflation.
The analyst shows a chart showing Bitcoin’s correlation with the Federal Funds rate.
“The primary options for risk assets in Q1 appear to be either bear-market bounce or bottom, and a nascent leading indicator – Bitcoin – could roll over. The benchmark crypto pulls back from resistance as the top headwind remains: ” Don’t fight the Fed.”
In a new interview with The Wolf of All Streets podcast host Scott Melker, McGlone further expands on his overall view on the current state of the crypto industry. He says more regulation may be coming to the industry soon, and that may not be a bad thing.
“It’s just classic, classic Warren Buffett – ‘The tide’s out, we’ll see who’s not wearing clothes.’ There is still a lot… There is so much adult supervision needed in crypto. Yes. I know people complain about regulation. I understand. Sorry. But people like Sam Bankman-Fried are proving that young people who play video games shouldn’t be running companies and taking your money and giving it away to their parents to buy houses and stuff.
It’s just the lessons we learn. When you put your money with a trusted producer, an exchange, you will be able to trust that exchange… So that’s just what happens. Classic “tide has gone out.”
BTC is worth $21,502 at the time of writing, down 2.4% in the last 24 hours.
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