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Bloomberg analyst: Fed puts pressure on crypto markets

A senior macroeconomic strategist at Bloomberg Intelligence warned of a possible decline in the value of Bitcoin due to the actions of the American central bank.

Michael McGlone, on the Understanding Macro podcast, reported that the world is now seeing an increase in benchmark interest rates. This puts pressure on the cryptocurrency market and other risky assets. According to the analyst, the price of Bitcoin is now in the process of “returning.”

“The Federal Reserve is like a 300 kg gorilla: if it hits, it hits hard. And he continues to tighten monetary policy. Therefore, I think that the process of returning the price has already begun,” said Michael McGlone.

The Bloomberg strategist believes that the nearest support level for Bitcoin will be $25,000 per BTC, meaning a decline of 5% in the short term. Moreover, the growth of the Bitcoin rate since the beginning of the year still remains large-scale:

“The price inflation for Bitcoin and other risk assets has been significant. We remember something similar with Amazon shares. This is a good indicator. At some point, we will see BTC become similar to gold and treasury bonds. But this year we have already seen growth, and now we are facing a pullback.”

McGlone has previously said that the cryptocurrency industry will face difficult times.

Source: Cryptocurrency

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