Bitcoin: Bloomberg Analyst Shares Warning about Massive Threat
Bloomberg Intelligence senior macro strategist Mike McGlone is cautioning Bitcoin (BTC), traders to avoid going against the U.S. Federal Reserve.
Avoid fighting the Fed
McGlone has warned his Twitter followers that Bitcoin is still facing significant challenges in the first quarter of 2023, particularly the Federal Reserve and its plans to control inflation. He stated that the primary risk for Q1 is either a bear-market bounce or a bottom, with the largest cryptocurrency by market cap moving away from resistance and the top headwind being “Don’t fight the Fed.”
The analyst shared a chart showcasing Bitcoin’s correlation with the Federal Funds rate.
The primary 1Q risk-asset options appear to be either bear-market bounce or bottoming, and a burgeoning leading indicator – #Bitcoin – may be rolling over. The benchmark crypto is backing away from resistance as the top headwind remains: 'Don't fight the Fed.' pic.twitter.com/k0dWnmbuGi
— Mike McGlone (@mikemcglone11) February 13, 2023
Opinion on Crypto Regulation
In a recent interview with The Wolf of All Streets podcast host Scott Melker, McGlone gave his outlook on the current state of the crypto industry. He believes that more regulation may soon be coming to the crypto industry, which he believes could be good.
McGlone stated that the crypto industry needs supervision and cited the lessons learned from recent events in the industry, such as the case of Sam Bankman-Fried, who has been criticized for his involvement in the crypto industry at a young age.
He said that people want to trust the exchange they put their money in and that the crypto industry is undergoing a “tide’s gone out” moment, much like Warren Buffett’s famous quote.
Conclusion
In conclusion, Mike McGlone is warning Bitcoin traders to avoid going against the Federal Reserve in the first quarter of 2023 and believes that more regulation may be coming to the crypto industry, which may not be bad.
He cites the need for supervision in the crypto industry and believes people want to trust the exchanges they trust their money to.
Andrey Kunev
Reporter at CoinsPress
Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.
