Bloomberg Intelligence analyst Mike McGlone thinks the top two cryptocurrencies by market cap will gain the most after the recent price drop that affected all asset classes.
In a new interview with Yahoo Finance, McGlone states that the Federal Reserve’s rate hikes are more harmful to the US stock market in the long run than proven digital assets like Bitcoin (BTC) and Ethereum (ETH).
“The most important thing to remember if the stock market continues to fall is that Bitcoin and Ethereum will also go down, but they will be profitable.
Overall, the volatility of these emerging crypto assets, particularly Bitcoin, has subsided against the stock market. That’s what happened when Amazon first came out. The volatility in 2009 was the same as Bitcoin is now.”
McGlone thinks cryptocurrencies represent the next revolution like Amazon and other 2000s winners.
“Investors look forward to the future – do you really want to miss this revolution?
What I see is this. There are some sell offers on the exchange and down offers on things like Bitcoin and Ethereum.”
McGlone also pointed out that although BTC has lost the $30,000 level, it is not the only asset class to decline.
“Bitcoin is falling with all its risk assets. What happened to the S&P 500 this week? It eventually fell below 4,000 for a time.
For the first time in nearly two years, both Bitcoin and the S&P 500 have returned to the 100-week moving averages…
The asset that has risen the most in the last five, 10 years will come back… More likely to be profitable.”
You can check the price movements here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.