Mike McGlone, a senior analyst at Bloomberg Intelligence, who is followed by investors with his analysis of Bitcoin and the crypto money market, made an assessment of the decline in Bitcoin.
Stating that the decline in Bitcoin can accelerate the decline in other risky assets, Mike McGlone shared the decline signals he saw in BTC.
According to the analyst, if the worst-case scenario for risky assets is still not over, BTC and cryptocurrencies are also likely to fall.
Comparing the stock market to the crypto market, McGlone stated that Bitcoin and cryptos have risen more than stocks.
Thinking that this bullish rate difference is possible within the broader bear market, McGlone warned that if stocks drop, a similar decline may occur in Bitcoin and cryptocurrencies.
“If the worst for risk assets isn't over, Bitcoin could drop further.
If the stock markets are still in a bear market, the bear market for Bitcoin and cryptocurrencies is probably not over.
If we compare the stock markets to crypto, Bitcoin has increased by about 70% from the beginning of 2023 to May 2, while the stock market has increased by only 20%. This could bounce back in broader bear markets."
Mike McGlone, who also evaluated the Fed's interest rate hike in May and the messages it gave, stated that the fact that the FED did not change its mind about interest rates could be a sign of decline.
"The fact that the Fed is still in a tightening policy in May and tends to maintain its tightening policy if its risky assets do not fall in a way that will help drive inflation could be a harbinger of decline."
Bitcoin Could Pace Declines for Risk Assets –
If the worst isn't over for risk assets, #Bitcoin may lead the way lower. pic.twitter.com/UlEVjCEKwr— Mike McGlone (@mikemcglone11) May 8, 2023
*Not investment advice.
