Bitcoin (BTC) and the broader cryptocurrency market retested $24,000 in response to the recent 75-basis-point increase in interest rates by the Federal Reserve. As the Fed seeks to manage inflation, speculation exists over the market’s reaction to future rate increases.
In this tweet, Bloomberg commodities analyst Mike McGlone suggests that future Fed meetings on interest rates would likely provide the groundwork for Bitcoin to surge higher and beat the majority of asset classes.
After substantial sell-offs in 2022, he said that Bitcoin may be in its early recovery stages. “Federal Reserve Chairman Jerome Powell’s “meeting by meeting” remark may signal the revival of Bitcoin’s inclination to outperform the majority of assets. “New and untested are quickly becoming the past tense for the benchmark cryptocurrency, most likely in the early days of recovery after a significant downturn,” said McGlone.
According to the analyst, Bitcoin is the ‘fastest horse in the race despite having a higher risk profile than other assets. He said that Bitcoin contains the technology and characteristics for rapid adoption, and that, coupled with a shrinking quantity, the assets would likely appreciate and outperform other financial products.
McGlone suggested, before the next Federal Reserve meeting, that the institution will likely reduce interest rates as the world economy faces the possibility of a recession.
McGlone’s optimistic stance on Bitcoin
Overall, McGlone has kept an optimistic stance on Bitcoin, predicting that the cryptocurrency would most certainly reach a top of $100,000. According to Finbold, McGlone predicts that Bitcoin will emerge as the highest performing asset in the second half of 2022.
Notably, Bitcoin has lately made slight increases, with efforts to keep its price over $20,000 reaching a 6-week high and propelling the market to recapture the $1 trillion market size.