Mike McGlone bases his conclusions about changes of market value of two leading by capitalization cryptocurrencies on analysis of correlation of bitcoin and ether movement with movements of stock market quotations and gold prices.
The possibility of occurrence in the U.S. of recession negatively affecting the stock market, as well as a tendency to accumulate gold together with tightening of Fed policy may negatively affect sentiment of crypto-investors, the analyst said.. The consequence of the pressure could be the ousting of the riskiest assets from investment portfolios.
The expert reminded Bloomberg that as the market for digital assets expands, there is an increasing correlation with the stock market and the market of precious metals. Given the start of a legal war between the Securities and Exchange Commission (SEC) and major crypto exchanges, crypto-assets are in a zone of greater investment risk than traditional financial instruments.
McGlone suggests that in the near term, VTCs and ETNs could trade in a tight range and fall in value. Not catastrophically, though.
On Friday afternoon, June 9, bitcoin is trading at $26 697. Over the past seven days, the value of the VTS fell
1,4%
The market value
ether fluctuates around $1 852. Over the past seven days, ETN has lost about 2% in value
Earlier, a Bloomberg analyst said he was impressed with the resilience of bitcoin and ether amid the decline in the crypto market, saying he believed in the future of the top digital currencies.