Mike McGlone Says Bitcoin Could Fall With Stocks as Fed Rate-Hike Odds Rise
- McGlone said Bitcoin typically declines in an environment where federal funds futures are pricing in about 50 basis points of rate hikes over the next year.
- He said Bitcoin often recovers after the rate-futures market turns back toward easing, and that one of the strongest factors that could revive easing expectations is a stock-market decline.
- McGlone said metals or digital assets are unlikely to rise broadly on their own during a stock-market decline, and that gold, Bitcoin and stocks have recently shown extreme price moves.
Forecast Trend Report by Period
Bitcoin may be increasingly tied to the direction of the stock market as expectations build for higher U.S. interest rates.
On September 4, Mike McGlone, senior commodity strategist at Bloomberg Intelligence, wrote on X, formerly Twitter, that federal funds futures are pricing in about 50 basis points of rate hikes over the next year, an environment in which Bitcoin typically declines.
Bitcoin often recovers after the rate-futures market shifts back toward easing, he wrote. One of the strongest factors that could revive easing expectations is a decline in the stock market.
He also said metals or digital assets are unlikely to rise broadly on their own while stocks are falling. “We are all puppets of the stock market now,” he wrote.
In a separate post, McGlone said gold, Bitcoin and stocks have all shown extreme price moves recently. He added that the sharp market swings seen on September 3 were unlikely to continue unchanged through year-end.
