Bloomberg Intelligence’s senior macro strategist believes that risk assets like stocks need to crash before Bitcoin (BTC) jumps back to life.
In a new interview with crypto trader Scott Melker, Mike McGlone says Bitcoin is unlikely to take flight as long as the U.S. Federal Reserve keeps the money printer off.
“Here’s what I think the indication of the bad performance is – if you look at the overlay of Bitcoin versus [the Nasdaq], it typically outperforms when the liquidity pump is on, and it typically underperforms when the liquidity pump is off.
Relevant history is more relevant because it’s such a young asset, and the point is that the liquidity pump is clearly off, and it’s way off. I just looked at Fed fund futures – in one year they’re right around 5%. That shows no hope of getting this liquidity pump to go on.”
McGlone also tells his 59,800 followers on the social media platform X that the Federal Reserve may reverse its hawkish stance if the stock market melts down.
“Here’s a potential lose-lose. It’s unlikely the Fed will be adding liquidity anytime soon due to sticky inflation metrics. A top catalyst to trigger a pivot might be a reversal in what has helped buoy rates this year – the resilient stock market.”
The Bloomberg analyst highlights that Bitcoin is up 26,000x in 12 years and that BTC would still be one of the best-performing assets even if it loses over 63% of its current value.
“Heading back toward $10,000 would still maintain Bitcoin’s unprecedented performance.”
At time of writing, Bitcoin is worth $27,711 and is up over 6% in the last 24 hours.
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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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