Commodities expert warns of lingering crypto hangover
Following his observations of a concerning trend in the cryptocurrency market, Bloomberg’s senior commodity strategist has more recently predicted a lingering ‘crypto hangover,’ which he believes will continue throughout the fourth quarter of 2023. Specifically, based on historical patterns, Mike McGlone has noted that Bitcoin (BTC) may need to fail first as a prerequisite “for Fed[eral] fund futures in one year (FF13) to trough and indicate that liquidity is being turned back on,” as he explained in an X post shared on October 3. Bitcoin vs. Federal funds future in one year. Source: Bloomberg Intelligence/Mike McGlone In other words, “declining Bitcoin has preceded Fed pivots,” despite the Fed likely not caring about the maiden cryptocurrency, but “its 24/7-traded, leading-indicator status could be gaining traction.” As McGlone specified: “The bottom line for Bitcoin at the start of 4Q may be that liquidity remains negative, with price implications. Coming of age in a zero-inter...