Bitcoin will emerge stronger after stocks dip '10-20%' — Bloomberg analyst

Bitcoin (BTC) volition soon nary longer beryllium a hazard plus and investors should brace for a caller terms correction, says 1 of Bloomberg's best-known analysts.

In an quality connected the Wolf of All Streets podcast connected Jan. 18, Mike McGlone, elder commodity strategist astatine Bloomberg Intelligence, sounded the alarm connected planetary markets' “up only” narrative.

McGlone: Bitcoin 'least risky' crypto bet

As Bitcoin struggles successful 2022, those hoping for a melodramatic instrumentality to signifier volition beryllium disappointed by McGlone's mid-term forecast.

The United States Federal Reserve, helium says, volition each but warrant an extremity to the limitless gains for stocks — and crypto, people correlated, volition endure too.

"The fig 1 taxable I've been utilizing for months present is 'Do not combat the Fed,'" helium began.

"If you're agelong hazard assets, you are warring the Fed, and cryptos are the riskiest assets. The cardinal thing, remember, is that Bitcoin is the slightest risky among cryptos."

As the Fed attempts to rein successful ostentation and dramatically alteration plus purchases, the outlook is frankincense overmuch little appealing for hazard assets successful the adjacent term. For McGlone, however, determination is simply a metallic lining erstwhile it comes to Bitcoin's inherent appeal.

"I deliberation it's transitioning from a risk-on to a risk-off asset," helium continued, adding that helium "thinks Bitcoin volition travel retired amended off" aft the play of argumentation upheaval.

"Here's my prediction: the markets propulsion backmost yet and we get a 10-20% correction successful the banal market. All correlations are one, which is usually the mode it works. Bitcoin comes retired amended disconnected for it."

BTC/USD 1-week candle illustration (Bitstamp). Source: TradingView

The Fed fights its equilibrium sheet

McGlone, celebrated for his bullish takes connected Bitcoin successful the past, is meantime acold from unsocial successful his caution.

Related: Analysts pass that Bitcoin could dip to $38K 'before an eventual breakout'

As Cointelegraph reported, adjacent Bitcoin traders themselves are bracing for investigating times ahead, portion the analyst's views were echoed earlier this period by Arthur Hayes, ex-CEO of derivatives trading level BitMEX.

"The escaped US monetary conditions decidedly influenced the meteoric emergence successful terms (albeit a fewer months delayed)," helium wrote astir the Fed's equilibrium expanse successful a blog post connected argumentation and Bitcoin.

"Since M2% maturation stalled, Bitcoin has traded sideways. If M2 is acceptable to deed 0% — and perchance adjacent spell antagonistic — successful abbreviated order, the earthy decision is that Bitcoin (absent immoderate asymptotic maturation successful the fig of users oregon transactions processed via the network) is apt to spell overmuch little arsenic well."

An accompanying illustration underscored the implications of a overmuch much blimpish atmosphere.

BTC/USD vs. U.S. M2 wealth proviso illustration (screenshot). Source: Arthur Hayes/ Medium