Mike McGlone builds his conclusions about the change in the market value of the two leading cryptocurrencies by capitalization on the analysis of the correlation between the movement of bitcoin and ether with the movement of stock market quotes and gold prices.
The possibility of a recession in the United States, which is negatively affecting the stock market, as well as the tendency to accumulate gold, coupled with the tightening of the Fed’s policy, may negatively affect the mood of crypto investors, the analyst says. Pressure may result in the exclusion of the most risky assets from investment portfolios.
The Bloomberg expert recalled that as the digital asset market expands, there is an increase in its correlation with the stock market and the precious metals market. Given the start of a legal war between the Securities and Exchange Commission (SEC) and major crypto exchanges, crypto assets are at greater investment risk than traditional financial instruments.
McGlone suggests that in the near term, BTC and ETH may trade in a narrow range and fall in price. Though not catastrophic.
On the afternoon of Friday, June 9, Bitcoin is trading at $26,697. Over the past seven days, the cost of BTC fell
by 1.4%
The market value of ether fluctuates around $ 1,852. Over the past seven days, ETH lost about 2% in value
Earlier, an analyst at Bloomberg stated that he was impressed by the resilience of Bitcoin and Ethereum amid the fall of the crypto market, saying that he believes in the future of top digital currencies.
Source: Bits
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