Mike McGlone, the Senior Commodity Strategist for Bloomberg Intelligence, the research arm of the television network Bloomberg, asserted that the risk assets including Bitcoin would be highly affected by the continuous interest hikes by the Federal Reserve.
Interestingly, the Senior Strategist reiterated that the efforts of the Fed to lower inflation, despite the chance for a recession, would be a “headwind” to the crypto assets, noting:
Notably, McGlone shared a Twitter thread on his official account commenting “don’t fight the Fed.”
Significantly, McGlone posed the necessity of the risk assets, especially crypto, to stay resilient at the beginning of March, “as the federal fund rate was zero a year ago and is still approaching 5%”.
In addition, he raised the ambiguities regarding the current position of the crypto, adding whether it could dive deeper into a lower position than in 2022. He stated:
Further, he reaffirmed that this month would prove whether crypto would remain resilient despite the Fed’s tightening monetary policy, referring to the key price level for Bitcoin as $25,000.
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Source: Cryptocurrency - investing.com
