By the end of the year, according to Bloomberg Intelligence analyst Mike McGlone, blue-chip crypto assets will outperform other commodities.

McGlone argues that after the US stock market sinks more, leading digital assets Bitcoin (BTC), top smart contract platform Ethereum (ETH), and ETH challenger Solana (SOL) will restart their climb, according to a new interview on the Scott Melker podcast.

He believes that a more severe equities market correction will push the Fed to reconsider its stance on monetary tightening, resulting in bull runs in risky assets such as cryptocurrencies.
<blockquote><em> “Right now, I see cryptos as basically a pawn in the ebbing tide. The Fed will keep jawboning, until the stock market – that’s the number one indicator, until [the stock market] goes down enough that [it] makes the Fed pause…That’s when I think we’re going to see what’s already happening, accelerate. Bitcoin, Ethereum, and I don’t know the other ones, maybe Solana, to resume their outperformance trends, and they’ve already done a good job.”</em></blockquote>
McGlone believes that the Federal funds futures rate, which captures investor expectations for where the official federal funds rate will be at contract expiration, might serve as a "bottom indicator" for the crypto market. A reversal in sentiment may be beginning, according to the analyst, if investors hit a peak level of caution on the Fed funds futures.
<blockquote><em> “My key theme is if you want a good bottom indicator for Bitcoin and cryptos, it’s the Fed fund futures… it’s what the market expects the Fed to be doing a year from now. Right now, it’s priced for 3%, or maybe more, and the actual rate is 1%. Once that forward expectation starts bottoming, I think Bitcoin is going to bottom.”</em></blockquote>
At the time of writing, bitcoin was trading at $38,558 per coin, up 2% from its 24-hour high of $37,840, while ETH and SOL were trading at $2,810 and $86.40, respectively.

Bitcoin, Ethereum and Solana To Resume Uptrend by the End of the Year, Says Bloomberg Analyst

By the end of the year, according to Bloomberg Intelligence analyst Mike McGlone, blue-chip crypto assets will outperform other commodities.

Prabhjeet Bhatla is a cryptocurrency writer covering startups and a researcher since 2020. She has authored many articles for Entrepreneur India and APAC (digital and print) on cryptocurrency and ever-evolving Blockchain, the technology behind Bitcoin, and other cryptocurrencies. She specializes in applied cryptography, privacy-enhanced information storage systems, anonymous cryptocurrencies, elliptic curve crypto-systems, and satellite television piracy.

Bitcoin, Ethereum and Solana To Resume Uptrend by the End of the Year, Says Bloomberg Analyst

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