Bloomberg commodity analyst Mike McGlone evaluated Bitcoin and gold prices. He underlines that these two popular tools have a huge explosion potential with the decision of countries to raise interest rates, increasing inflation and the effect of wars.
McGlone shared on Twitter that assets used as a store of value will have a great opportunity for growth in the coming months.
"#Bitcoin May Notch Win-Win vs. the #StockMarket -
The fact that a primary force to reverse potential Federal Reserve rate hikes -- a stock-market decline -- may enhance store-of-value assets like gold and Bitcoin is a basis for diversification."
McGlone believes that in case of a decline in the crypto money market, the FED can prevent interest rate hikes, which will also lead investors to BTC and gold intensively. Therefore, according to the analyst, it can be seen as a good strategy for investors to diversify their portfolio.
On the other hand, both Goldman Sachs and Bank of America analysts think that the decline of the cryptocurrency market is influenced by the possibility of the Fed's decision to raise interest rates. Therefore, it is thought that the market is priced in and will no longer be affected by the FED's decision to increase interest rates.
McGlone stated on his Twitter account about a week ago that Bitcoin and Ethereum are still in early adoption phases. However, he believes that the two largest cryptocurrencies will continue to rise thanks to the supply-demand dynamics.