Bloomberg Research analyst Mike McGlone said on a podcast with Scott Melker that Cryptocurrencies such as Bitcoin and ether will resume their uptrend when the U.S. stock market continues to fall. According to McGlone, Solana will also join the rise of market leaders.
The expert believes that a sharper correction in the stock market will force the U.S. Federal Reserve (Fed) to change its stance on tightening monetary policy, triggering a bullish bounce in high-risk assets such as Cryptocurrencies.
“Right now, I view Cryptocurrencies as a safe haven. The Fed will continue its policy until the stock market, the number one indicator, falls enough to cause the Fed to pause. That’s when I think we’ll see Bitcoin, ether, and maybe Solana rise. They’ll outperform other assets like they did before”McGlone is confident
He believes that the federal funds futures rate, which reflects investors’ views of the Federal Reserve’s bond rate at the time of expiration, could serve as a “bottom indicator” for the Cryptocurrency market. The analyst says that once investors reach a peak level of caution about Fed funds futures, sentiment could change.
“If you want a good lower indicator for Bitcoin and Altcoins, it’s Fed funds futures. That’s what the market expects from the Fed in a year. Right now it is estimated at 3%, maybe more, and the actual rate is 1%. Once that forward-looking expectation starts to come down, I think Bitcoin will bottom out”the analyst said
At the same time, the marketing director of Cryptocurrency exchange Gate.io praises the potential of the NFT industry and believes that collectible Tokens can overtake Bitcoin and other Cryptocurrencies in terms of market capitalization.