Bitcoin (BTC) will soon cease to be an element of risk, and investors should prepare for a new price correction, according to one of the most famous Bloomberg analysts.

Speaking on the Jan. 18 Wolf Of All Streets podcast, Mike McGlone, chief product strategist at Bloomberg Intelligence, sounded the alarm that global markets are “just getting up.”

McGlone: ​​The ‘least risky’ crypto game with Bitcoin
While Bitcoin struggles in 2022, those hoping for a sharp return to shape will be disappointed by McGlone’s tentative predictions.

According to him, the US Federal Reserve almost guarantees the end of unlimited dividends for stocks – and naturally related cryptocurrencies will also suffer.

“The number one theme I’ve been using for months now is don’t fight the Fed,” he began.

“If you have long-risk assets, you fight the Fed, and cryptocurrencies are the most risky assets. The most important thing to remember is that bitcoin is the least risky among cryptocurrencies.”
As the Fed seeks to rein in inflation and sharply cut asset purchases, the outlook is less attractive for risky assets in the short term. However, for McGlone, this is a positive when it comes to the inherent attractiveness of Bitcoin.

“I think it is moving from a risky asset to a risk-free one,” he continued, adding that he “believes Bitcoin will do better” after a period of political turmoil.

“This is my prediction: the markets finally pull back and we get a 10-20% correction in the stock market. All correlations are the same, which usually works. Bitcoin gets out of this better.”

1 week light chart of BTC/USD (bit tick). Source: Trading View
The Fed is struggling with its balance sheet
Meanwhile, McGlone, who is known for his previous bullish trend for bitcoin, is far from cautious.

Related: Analysts Warn Bitcoin Could Drop to $38,000 ‘Before Possible Outbreak’

As Cointelegraph reported, even bitcoin traders are bracing for future challenges, while the analyst’s opinion was confirmed earlier this month by Arthur Hayes, former CEO of derivatives trading platform BitMEX.

“The unstable monetary conditions in the US certainly contributed to the rapid (albeit a few months late) rally,” he wrote about the Federal Reserve’s balance sheet in his Bitcoin and Policy blog.

“With M2% gains stalling, Bitcoin is trading sideways. If M2 is set to hit 0% — and possibly go negative — in a short time, the corollary is that Bitcoin (no asymptotic growth in the number of users or transactions processed via network) is also likely to go down a lot. .

Source: CoinTelegraph

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