According to Bloomberg analyst Mike McGlone, bitcoin is an asset well-positioned to bounce back when the bear market is over – despite being considered a high-risk asset.
Although the US Federal Reserve’s tightening will control how the stock market goes, bitcoin is still a “wildcard” that is “ripe” to outperform stocks as soon as the stock market hits a bottom.
That’s what Bloomberg analyst Mike McGlone writes in a post on Twitter, reports Cointelegraph.
“Bitcoin is a wild card that has good conditions to perform comparatively well once the stock market has bottomed, but which turns into becoming more like gold and bonds,” he writes.
Macro in Five Charts: Crude, Commodities, Stocks, Bonds, Bitcoin – #Crudeoil may be resuming an enduring bear market and refueling the T-bond bull. #FederalReserve tightening as global GDP turns negative may help transmogrify #stocks to going down on bad news and up on good. pic.twitter.com/KZEWsZyI8h
— Mike McGlone (@mikemcglone11) September 7, 2022
According to McGlone, bitcoin is an asset well-positioned to bounce back when the bear market is over – despite being considered a high-risk asset.
“It’s normally only a matter of time before the Fed’s funding gauge flips over again, and when it does, bitcoin is poised to be boosted by this,” he writes in a report.
Correlated or not
According to the report, there is a chance that the bitcoin price may move like government bonds and gold, while ethereum “may have a higher correlation with stocks.”
Meanwhile, there are other experts who believe that bitcoin and the stock market are actually more correlated than ever.
Cryptoanalyst Michaël van de Poppe, for example, recently said that the correlation between the American stock index S&P 500 and bitcoin approached 100 percent, writes Cointelegraph.