Bloomberg Intelligence analyst Mike McGlone says the top two cryptocurrencies by market capitalization will drive the most gains after the recent price drop that affected all asset classes.
In a new interview with Yahoo Finance, McGlone identifies Federal Reserve interest rate hikes as being more detrimental to the U.S. stock market over the long term than time-tested digital assets like Bitcoin (BTC) and Ethereum (ETH).
“The key thing to remember if the stock market continues to fall, which is probably because the Fed needs it to go down and reduce inflation, Bitcoin and Ethereum will go down, but they will come out on top.
Overall, the volatility of these nascent crypto assets, especially Bitcoin, has continued to decline relative to the stock market. That’s what happened with Amazon when it came out. Its volatility in 2009 was the same as with Bitcoin right now.
McGlone says cryptocurrencies are the next revolution on par with Amazon and other market innovators and winners of the 2000s and 2010s.
“Investors are looking to the future – do you really want to miss this revolution?
That’s what I see happening. A bit of sell offers in the stock market and offers below in things like Bitcoin and Ethereum.
As of this writing, Bitcoin is up from weekly lows below $27,000 after falling over $36,000 a week ago. It is currently in the green by nearly 5% and priced at $29,843.
McGlone notes that although BTC has lost the $30,000 level, it is not the only asset class in decline.
“It goes down with the ebb tide with all the risky assets. What happened to the S&P 500 this week? It eventually dipped below 4,000 for a while.
For the first time in about two years, Bitcoin and the S&P 500 have returned to 100-week moving averages…
The asset that has risen the most in the last five or 10 years is going to come back as the Fed hammers the punch bowl… It’s more likely to come out on top.
ETH is up 6.83% with a trading price of $2,047.
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