Currently, the trend in the crypto market is more or less bullish. Several analysts expect major movements in this market in the coming weeks. But, for Mike McGlone, senior macro strategist at Bloomberg Intelligence, we should not be too quick to declare victory. Here is the analyst’s recent prediction for the future prices of BTC and other tokens.
Rising US interest rates could send the crypto market crashing
Just recently, Mike McGlone made a less than rosy prediction about the crypto market. He indicated that one element could stimulate a drop in digital asset prices in the coming days. McGlone argues that bitcoin and altcoins are at risk of fall if the Fed continues to raise US interest rates.
Bloomberg Intelligence’s senior macro strategist explained:Fed tightening despite recession risk could be a major headwind for most risky assets, including cryptos. Investors who buy and hold their cryptos might want to have protection insurance. Insurance against the risk that the bear market is not over“.
The Fed’s strategy to reduce inflation may lead to a downtrend. This one could be tougher than 2022.”What if crypto and stocks hadn’t bottomed out yet? Crypto and equity prices have rebounded, which may leave them vulnerable to a resumption of 2022 bearish trajectories», expressed himself McGlone.
The crypto analyst added that the stock market in decline can be one of the most powerful forces in the world. He emphasized:Also, Fed tightening amid high recession risks points to strong headwinds“. “Cryptocurrencies Need to Show Enduring Strength Amid Concerns 2022 Risk Asset Lows May Not Be Lows“, specified the strategist.
According to strategist McGlone, the $25,000 mark is a key price level for bitcoin (BTC). The analyst expects this new month to determine the next trend in the flagship crypto market. He explained : “Risk vs. return could tilt in favor of reactive sellers, who are tactically focused, with $25,000 for bitcoin marking pivotal resistance“.
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