Crypto Price Decline: The Cause Revealed by Analyst

Mike McGlone, senior macro strategist at Bloomberg Intelligence, has suggested that the US Federal Reserve’s (Fed) hawkish inflation-curbing strategy is the primary factor causing downward pressure on cryptocurrency prices. Writing in his latest analysis of digital assets, McGlone advised investors to seek insurance against asset devaluation, adding that the recent rebound in digital assets could leave them vulnerable to future price downturns. McGlone warned that the crypto bear market is far from over, noting that crypto assets and equities have yet to reach their lowest point. He also said the stock market, including crypto, is highly susceptible to recession risks, which increased along with the continued monetary tightening by the Fed. The analyst suggested that cryptocurrencies have not yet found their bottom, as the Fed prepares for its next basis point (bps) in interest rate hikes in March; the latter would determine whether cryptocurrencies can sustain their pivot levels. Low CPI data in March could improve market sentiment, leading to an increase in crypto and stock prices. However, if the inflation index is high, investor sentiment may plummet, causing significant price declines across the market.

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About The Author

Niels I have been passionate about dogecoin since 2019, and have since become an avid follower and advocate of the cryptocurrency. I keep a close eye on the Dogecoin market and trends, and I'm always up-to-date with the latest news and developments. As a true believer in the potential of dogecoin, I am excited to be a part of the growing community and I'm eager to share my knowledge and experience with others. When not busy with dogecoin, I enjoy golf, and I can often be found on the golf course.

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