{"id":144479,"date":"2023-09-01T16:00:44","date_gmt":"2023-09-01T10:30:44","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=144479"},"modified":"2023-09-01T16:00:44","modified_gmt":"2023-09-01T10:30:44","slug":"stock-market-has-to-collapse-before-bitcoin-comes-back-to-life-according-to-bloomberg-strategist-heres-why-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/stock-market-has-to-collapse-before-bitcoin-comes-back-to-life-according-to-bloomberg-strategist-heres-why-crypto-news\/","title":{"rendered":"Stock Market Has To Collapse Before Bitcoin Comes Back to Life, According to Bloomberg Strategist \u2013 Here\u2019s Why – Crypto News"},"content":{"rendered":"

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Bloomberg Intelligence\u2019s senior macro strategist believes that risk assets like stocks need to crash before Bitcoin (BTC<\/a>) jumps back to life.<\/p>\n

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.<\/p>\n

\u201cHere\u2019s what I think the indication of the bad performance is \u2013 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.<\/em><\/p>\n

Relevant history is more relevant because it\u2019s such a young asset, and the point is that the liquidity pump is clearly off, and it\u2019s way off. I just looked at Fed fund futures \u2013 in one year they\u2019re right around 5%. That shows no hope of getting this liquidity pump to go on.\u201d<\/em><\/p>\n

McGlone also tells<\/a> 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.<\/p>\n

\u201cHere\u2019s a potential lose-lose. It\u2019s 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 \u2013 the resilient stock market.\u201d<\/em><\/p>\n

The Bloomberg analyst highlights <\/a>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.<\/p>\n

\u201cHeading back toward $10,000 would still maintain Bitcoin\u2019s unprecedented performance.\u201d\u00a0<\/em><\/p>\n

At time of writing, Bitcoin is worth $27,711 and is up over 6% in the last 24 hours.<\/p>\n