Bitcoin fell below $21,000 earlier, but Bloomberg senior analyst Mike McGlone said earlier: Bitcoin volatility fell to a new low, rising compared to most assets, and the recent performance is expected to outperform the broader market. In addition, the IMF report pointed out that the sell-off in the crypto market will not affect global financial stability. (Recap:Yellen: U.S. growth slows, but recession ‘not inevitable’) (background supplement:Viewpoint｜Understanding the General Economics in one article: Recession is more indicative than inflation, yield inversion is meaningless, and institutional thinking is used to see the next round of bull market)
CompareBitcoin (BTC) once exceeded US$22,000 in the early morning of yesterday (26), but then fell again after failing to gain a firm footing. In the evening, with the impact of the US stock market opening down, it once fell below US$21,000 to a minimum of US$20,707, as of the deadline. Previously, it was reported at $21,259; Ether (ETH) was also weak, at $1,450.
Bloomberg’s Mike McGlone: Bitcoin poised to outperform in the near term
Although the recent rebound in the cryptocurrency market does not seem to be strong, Mike McGlone, senior commodities analyst at Bloomberg Intelligence, tweeted on the 26th that Bitcoin’s recent performance may be better than the broader market.
lowest ever Bitcoin Volatility vs. Bloomberg Commodity Index (BCOM), May Predict CryptoThe currency will outperform the broader market for a trend revival.
Mike added that the recent unwinding of long commodity positions, the fastest drop in copper prices since 2008, and the recovery of U.S. bond futures from their steepest losses in 1987, all at a time when the Fed is aggressively tightening policy, may It will gain momentum for the cryptocurrency to outperform the broader market.
The lowest-ever #Bitcoin volatility vs. the Bloomberg #Commodity Index (BCOM) may portend a resumption of the crypto’s propensity to outperform. Our graphic showing the elongated upward trajectory of Bitcoin’s price vs. the BCOM is typical compared with most assets. pic .twitter.com/vufd4qouVj
— Mike McGlone (@mikemcglone11) July 25, 2022
IMF report: Crypto market sell-off will not affect global financial stability
In addition, the International Monetary Fund (IMF) said in a report yesterday: Although the world economy is suffering from high inflation and recession due to the impact of the war in Ukraine and the continued blockade of the new crown virus, the collapse of the cryptocurrency market will not affect the world. Financial stability; the IMF prefers to see inflation and recession as the main risks rather than volatility in the cryptocurrency market.
Despite recent collapses in crypto markets such as TerraUSD stablecoins and Three Arrows Capital, the impact has been relatively muted…the ripples to the wider financial system have been limited.
Biden: I don’t think America is going into recession
It is worth noting that the quarterly reports on the rate hike of the Federal Reserve and GDP will be released later this week. According to an earlier report by CNN, US President Biden said that although there are signs that the economy may have two consecutive quarters slowing down, but he’s not worried that the U.S. will slip into a recession.
In my opinion, we are not in a recession. Unemployment remains in the all-time low range of 3.6%. We can still see a lot of people staying at home to invest…I hope our economy will go from fast growth to steady growth, so we are bound to see some decline in the economy.
God forbid, I don’t think we will see a recession.
– U.S. President Biden
U.S. Treasury Secretary Yellen also said in an interview earlier this week that while economists expect negative growth this quarter after seeing a negative 1.4 percent last quarter, I don’t think the National Institute for Economic Research will see that. It means the U.S. economy is in recession.
Note: Usually the general definition of a recession is two consecutive quarters of negative GDP growth, but this is not absolute, it still depends on how the National Institute of Economic Research defines it.
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