The flagship currency, BTC, and the general crypto market reacted positively recently. This was after the US Federal Reserve increased the interest rate by over 75 BP (basis point).
Additionally, Bitcoin even crossed the $24,000 level. However, the crypto community is uncertain about how future rate hikes will affect the price of Bitcoin and other cryptos.
Bloomberg Strategist Says Bitcoin Is Gearing For A Recovery
Meanwhile, Mike McGlone, Bloomberg’s commodity strategist, gave his prediction on Twitter. The strategist believes all Fed meetings to increase the rate will boost the foundation of Bitcoin.
According to McGlone, this will cause the cryptocurrency to rally and perform better than most assets. In his July 29th tweet, he said BTC might be gearing up for recovery after major sell-offs this year.
“The regular meeting by Jerome Powell, Chairman of the Fed Reserve might mark a turning point for BTC to thrive. This is similar to the recovery witnessed by the cryptocurrency in the early days after a major fall.” McGlone stated.
Additionally, McGlone said BTC would top other digital assets in the crypto market. He said the flagship currency has the qualities and technology to foster quick adoption.
Also, due to its reducing supply, the cryptocurrency will most likely skyrocket. As a result, it would perform better than other assets in the market.
Fed Reserve To Slow Down On Rate Hikes
Furthermore, McGlone talked about the upcoming meeting by the Federal Reserve. The recent rate hikes by the Fed are an attempt to curb the rising inflation in America.
Meanwhile, Bloomberg’s strategist believes the financial institution may slow down with the rate hike. This is to prevent the international economy from falling into recession.
With the next meeting on September 21st, the institution has enough time to gather new data. McGlone said the looming global recession and deflation of commodities would cause the Fed to slow down.
Consequently, this action would favor assets such as gold, Bitcoin, and US Treasury bonds. Moreover, the commodity expert is still bullish on Bitcoin.
He noted that the cryptocurrency might increase to about $100,000. According to Finbold, McGlone believes BTC will perform better than other digital currencies in H2 2022.
Furthermore, BTC achieved a minor feat recently. The digital currency crossed the $24,000 mark before falling slightly.
Besides, the crypto has been trading above $20,000 in the past weeks. It has also pushed the market capitalization above $1 trillion.