Bitcoin (BTC) and the wider cryptocurrency market have reacted positively to the latest Federal Reserve interest rate hike by 75 basis points, with the asset retesting $24,000. There is interest regarding how the market will react to future hikes as the Fed attempts to contain inflation.
In this line, commodity strategist at Bloomberg Mike McGlone, in a tweet posted on July 29, suggested that the upcoming Fed meetings on interest rates will likely build the foundation for Bitcoin to rally further and outperform most asset classes.
He noted that Bitcoin might be in early recovery days after significant sell-offs in 2022.
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“Federal Reserve Chairman Jerome Powell’s “meeting by meeting” comment may mark the pivot for Bitcoin to resume its tendency to outperform most assets. New and untested are becoming past tense fast for the benchmark crypto, likely in the early recovery days from a severe drawdown,” said McGlone.
Bitcoin to lead other asset classes
According to the strategist, Bitcoin can be considered as the ‘fastest horse in the race’ with a disadvantage of risk compared to other assets. He noted that Bitcoin possesses the technology and qualities for faster adoption, and along with diminishing supply, the assets will likely rally and outperform other investment products.
Ahead of the next Federal Reserve meeting, McGlone stated that the institution would likely slow down on interest rates as the global economy stares at a possible recession.
“The next meeting is Sept. 21, which leaves plenty of time to assess new data, and our bias is that deflating commodities and the global tilt toward recession should lighten the Fed’s rate-hike sled hammer and buoy store-of-value assets like US Treasury bonds, gold and Bitcoin.”
McGlone bullish stand on Bitcoin
Overall, McGlone has maintained a bullish stand on Bitcoin, noting the crypto will likely peak at $100,000. As reported by Finbold, McGlone notes that Bitcoin will likely emerge as the best performing asset in H2 2022.
Notably, Bitcoin has recently made minor gains with attempts to sustain its price above $20,000 hitting a 6-week high and driving the market to reclaim the $1 trillion capitalisation.
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