Bloomberg Strategist Warns Traders About Bitcoin

According to the latest reports, it seems that the Bloomberg strategist Mike McGlone warned that one catalyst could be driving Bitcoin and crypto prices down. Check out the latest reports that have been revealed just recently.

Bloomberg Intelligence senior macro strategist Mike McGlone says one catalyst could drive Bitcoin (BTC) to the downside.

In a new crypto analysis, McGlone says if the Federal Reserve continues to raise interest rates. It does this to lower inflation despite the risk of a recession, it could put downward pressure on risk assets like Bitcoin.

“Fed tightening despite the risk of recession could be a primary headwind for most risk assets, notably cryptos. Buy-and-hold investors may warrant some protective insurance for the potential that the bear market isn’t over.”

McGlone also questions whether crypto and equities could dip lower than they have during the bear markets of 2022.

“What If Crypto, Equity Haven’t Yet Seen Their Lows? Crypto and equity prices have bounced, which may leave them vulnerable to resuming 2022 downward trajectories. The stock market can be one of the world’s most powerful forces when it declines, and Fed tightening amid elevated recession risks are solid headwinds.”

McGlone also said the fact that $25,000 is a key price level for Bitcoin and March may quickly indicate whether crypto will remain resilient despite the Fed’s tightening monetary policy.

Regarding the price of Bitcoin today, at the moment of writing this article, BTC is trading in the red and the king coin is priced at $22,405.

The head of Visa’s crypto department has just denied reports that the US payment giant is pausing its digital currency efforts.

Cuy Sheffield, Visa’s head of crypto, said recently via social media that the recent uncertainty in the crypto sector is not prompting the company to step away from digital currencies, as was reported earlier this week.

Sheffield calls the reports “inaccurate” and explains Visa’s current crypto efforts.