Bloomberg Analyst Mike McGlone Predicts What Will Happen to Bitcoin If Oil Prices Surge Again
Mike McGlone, a guest on Scott Melker’s show The Wolf Of All Streets, discussed possible scenarios for the cryptocurrency world in light of macroeconomic data.
In his analysis, McGlone, who specifically highlighted energy costs and liquidity crunch, warned investors against an “unexpected decline.”
McGlone argues that the sudden rise in oil prices (WTI) has put central banks in a tight spot. According to the strategist, increasing energy costs could fuel inflation, delaying the Fed’s interest rate reduction process or leading to a tighter monetary policy. This means a decrease in market liquidity, which directly and negatively impacts risky assets like Bitcoin.
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One of the most striking points highlighted in the news is Bitcoin’s current position. McGlone points out that while Bitcoin retains its potential to be “digital gold” in the long term, it still shows a high correlation with stock market indices (especially Nasdaq) in the short term. In an economic recession scenario triggered by rising oil prices, Bitcoin is expected to feel downward pressure along with other risky assets.
Despite the general optimism in the market, McGlone pointed to historical cycles, noting that assets inflated by excessive liquidity experience sharp corrections when that liquidity is withdrawn.
*This is not investment advice.
Continue Reading: Bloomberg Analyst Mike McGlone Predicts What Will Happen to Bitcoin If Oil Prices Surge Again
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