A senior analyst at Bloomberg Intelligence believes that the depreciation of cryptocurrencies against the backdrop of a fall in the stock market is a normal phenomenon, and BTC and ETH will benefit from tightening US monetary policy.
Mike McGlone on Yahoo Finance Podcast declaredthat Ethereum and Bitcoin will be the most profitable given the recent price drop that has affected all asset classes. The analyst noted that the increase in the interest rate of the US Federal Reserve (Fed) will cause, in the long term, more damage to the stock markets than to proven cryptocurrencies such as bitcoin and ether:
“The main thing to remember is that, the stock market will continue to fall, because the Fed needs it to fall and reduce inflation, Bitcoin and Ethereum will fall, but then rise and bypass all other assets.”
A Bloomberg commodities expert believes that cryptocurrencies represent the next revolutionary stage of economic development, on par with Amazon and other market innovators, winners of the 2000s and 2010s:
“The volatility of these emerging crypto assets, most notably Bitcoin, continues to decline in parallel with the stock market. This is exactly what happened with Amazon when the online marketplace first appeared. The volatility of his shares in 2009 was the same as that of Bitcoin right now.”
McGlone warned that not everyone will have time to jump on the “train at full speed”, referring to the crypto industry:
“Investors are looking forward to the future. Do you really want to skip this revolution? There will be few offers for trading in the stock market ahead and many for Bitcoin and Ethereum.”
A Bloomberg Intelligence expert notes that despite BTC falling to $30,000, this is not the only asset class that has declined:
“Bitcoin is going down with other risky assets, following the ebb in the markets. What happened to the S&P 500 this week? For a while, the stock index fell below 4,000. Bitcoin, which has risen the most in the last five to ten years, will return when the Fed “fills the punch bowl.”
The head of the Bitcoin Foundation, Brock Pierce, claims that he observes a situation in the cryptocurrency market similar to the “dot-com crisis” at the turn of the 2000s and therefore diversifies his portfolio into EOS and NFTs.
Source: Bits
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