Bloomberg reveals this strategy to maximize your gains in the crypto-currency market

Ahead of the Consumer Price Report, Mike McGlone, senior macroeconomic analyst at Bloomberg Intelligence, shared his take on the crypto-currency market. outlook On the financial markets, and bitcoin (BTC) in particular. In addition, McGlone revealed what he believes to be the most beneficial strategy in the current state of the crypto market.

#Bitcoin reached the steepest discount vs. its 200-week moving average at the end of 2022. This is a top reason for the 1Q snapback, but the global economic ebbing tide still looks unfavorable. pic.twitter.com/9sO4GnXrco

Mike McGlone (@mikemcglone11) February 13, 2023

Thus, according to the macro strategist, in the current situation, those who buy and hold are more likely to benefit, as opposed to those who speculate and use leverage. The analyst cites increased volatility, typical of bear markets, as the reason.

Bitcoin, Nasdaq and the Fed

Regarding the current market conditions around bitcoin, despite a strong rebound in early 2023, Mike McGlone still sees the global economy as unfavorable. When the Nasdaq 100, one of the major U.S. stock indices, was up 10% in mid-February, bitcoin was up 30%. We can expect a similar performance in the opposite direction when the stock market reaches its low point, notes the analyst.

At the moment, however, both indices, if BTC is considered a benchmark for the crypto-currency market, are close to the level where the U.S. Fed has eased policy three times in history. If the regulator continues to tighten policy despite the risk of recession, then rising financial markets, and particularly the riskier crypto-currencies, will face a headwind, concludes Mike McGlone.