Bloomberg Intelligence analyst Mike McGlone says in a post he participated in, Bitcoin, Ethereum and Solana will outperform other commodities by the end of the year. Speaking on Scott Melker's podcast, McGlone stated that leading digital assets Bitcoin (BTC), top smart contract platform Ethereum (ETH) and ETH rival Solana (SOL) will continue their uptrend as the US stock market continues to decline.
The famous analyst predicts that the fall in the stock market will force the Fed to change its setting on monetary tightening, and then cryptocurrencies will start a bull run.
The leading cryptocurrency Bitcoin continues to trade below $40,000. BTC, which saw its highest level of the year by rising to $ 48,000 in early April this year, could not hold $ 40,000. Bitcoin, which was traded at $ 38,508 at the time of writing, according to Coinmarketcap data, has lost 1.22% in the last 24 hours. The market cap of the cryptocurrency is $732 billion.
On the Ethereum front, the outlook is similar to Bitcoin. ETH has been flat in the last 24 hours. The altcoin is currently trading at $2,842. With a market cap of $342 billion, ETH dominates 19.7% of the market.
Solana is priced at $88.44. SOL has lost 12.25% in the last 7 days. With a market cap of $29 billion, Ethereum rival is the 7th most valuable asset in the market.
Bitcoin awaits Fed decision
May is traditionally a bullish month in Bitcoin. In 7 of the last 11 years, Bitcoin recorded an increase in May, while the average increase was recorded as 27 percent.
However, crypto investors entered May this year with Fed anxiety. The Fed will announce its phase decision tomorrow. The market expectation is that the Fed will raise interest rates by 50 basis points. In a statement two weeks ago, Fed Chairman Jerome Powell pointed out that inflation is already very high and monetary policy is still supportive compared to the past, noting that it is appropriate to act a little faster in tightening.
These statements contributed to the decline of cryptocurrencies below $ 40,000. Analysts stated that the 50 basis point increase was priced in the markets, but the messages to be included in the decision text are eagerly awaited. He stated that the hawkish statements could create a new downward pressure on cryptocurrencies.
In this environment, Bitcoin has moved in a narrow band so far in May. Although it fell to $ 37,700 for a short time on Sunday, it quickly climbed above $ 38,000 again with the reaction buying from there.