In a recent analysis, Bloomberg’s senior commodity strategist, Mike McGlone, talked about the current state of Bitcoin and other cryptocurrencies.
McGlone proposed an idea that the growing number of digital assets in the market could be affecting how well Bitcoin is doing.
McGlone said that more and more altcoins are causing Bitcoin’s price to drop
McGlone compared the crypto market to an escalator going up due to easy money, but now it’s going down as the Fed tightens its policies. He mentioned there are nearly 10,000 cryptocurrencies listed on CoinGecko, and their increasing numbers have been influenced by years of low-interest rates. However, this trend is changing rapidly.
According to McGlone, Bitcoin has generally performed better than smaller cryptocurrencies since 2018, especially when the Fed has raised interest rates. But he also warned that the crypto market’s rapid growth is slowing down, which could continue to affect Bitcoin negatively for some time.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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