Bitcoin to Come Out Better-off, Following a 10% to 20% Stock Market Correction
Bitcoin to come out better-off following a 10% to 20% stock market correction.
Bitcoin, Transitioning from Being a “Risk-on” asset to “a” Risk-off” asset
Recently, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, appeared in Wolf of All Streets’ podcast. The podcast discussed a wide range of topics, including Bitcoin’s price behavior, its correlation with the stock market and the impact of US monetary policy on both arenas.
McGlone noted, citing US monetary policy, that the stock market “up only” narrative will see an end as the Fed takes measures to put a halt on increasing inflation.
Is #Bitcoin transitioning to a risk-off asset?https://t.co/DBDadt17z2
— Mike McGlone (@mikemcglone11) January 18, 2022
Resultantly, the stock market will see a correction of 10% to 20%. Bitcoin will follow as both markets seem sufficiently correlated to McGlone.
While McGlone did say that in the short term the prospects do not look impressive, but, he added, the Bitcoin will come out better-off. He added that Bitcoin is in transition from a “risk-on” asset to “risk-off” asset. McGlone added:
“If you’re long risk assets, you are fighting the Fed, and cryptos are the riskiest assets. The key thing, remember, is that Bitcoin is the least risky among cryptos.”
Bitcoin Prince Analysis
Currently trading at $41.5k, Bitcoin has gone through some tough times since the start of the year. At the beginning of year 2022 Bitcoin had traded around $47k, but later on Jan 10 the Premier cryptocurrency crashed down below $40k. At the moment Bitcoin is down 10% over the past 30-days. As for the technical analysis Bitcoin will continue to face resistance for some time, before it finally settles down.
Bitcoin currently has a support at $41k but a breach below $41k could take the coin to even $37k. On the contrary, if the Bitcoin breaks down above $44k, further gains could be expected.
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OhNoRipple via https://www.ohnocrypto.com/ @Gracie Perez, @Khareem Sudlow