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Bloomberg analyst calls Bitcoin a ‘wild card’, says major rebound is on the way

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Mike McGlone, an analyst for Bloomberg said that Bitcoin (BTC) is a ‘wild card’ that is set to for a major rebound when stocks finally bottom out. 

McGlone gave his analysis over a 7-part Twitter thread, this September 7 where he explained that Bitcoin remains a “wildcard” in the face of Federal Reserve’s control over the traditional stock market. 

“Bitcoin is a wild card that’s more ripe to outperform when stocks bottom, but transitioning to be more like gold and bonds.”

McGlone gave more detail in his report on September 7, where he highlighted Bitcoins potential to rebound from the bear market, even considering the upward battle facing high-risk assets. 

“It’s typically a matter of time for the fed funds gauge to flip toward cuts, and when it does, Bitcoin is poised to be a primary beneficiary.”

He added that Bitcoin may coincide with movements in treasury bonds and gold, while Ehtereum (ETH) “may have a higher correlation with stocks.”

The Federal Reserve has increased quantitative tightening during some major interest hikes that have been occurring throughout the year. The most recent interest rate hike accounted for 75 basis points on July 27. 

It is not known for certain when the quantitative tightening will subside, however, some economists have forecasted its end to be “at some point in 2023” as a Bloomberg article states. 

Other experts are led to believe, in contrast to McGlone, that Bitcoin and equity markets coincide on an even greater magnitude. 

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