Mike McGlone, a senior strategist at Bloomberg, expressed an opinion on the growing dependence of Bitcoin on the stock market and its analogy to gold.
Bitcoin and Stock Market Correlation
McGlone claims that Bitcoin is showing an increasing correlation with the S&P 500. This means that when the stock index rises, Bitcoin's price tends to rise as well, and vice versa. This behavior is characteristic of risk assets.
Bitcoin as a Risky Asset
The expert describes Bitcoin as a high-risk asset, implying that its price can change dramatically depending on market sentiments. This is due to Bitcoin's sensitivity to liquidity and investor moods.
Gold’s Potential in Changing Market Conditions
McGlone predicts that in the cooling stock market, gold may regain its popularity as a safe asset while Bitcoin faces selling pressure.
McGlone's analysis highlights the importance of understanding Bitcoin's current correlations with the traditional market and the potential implications for investors.
