{"id":390497,"date":"2022-01-06T21:00:00","date_gmt":"2022-01-06T18:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-could-outperform-stocks-in-2022-amid-fed-tightening-bloomberg-analyst\/"},"modified":"2022-01-06T21:00:00","modified_gmt":"2022-01-06T18:00:00","slug":"bitcoin-could-outperform-stocks-in-2022-amid-fed-tightening-bloomberg-analyst","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-could-outperform-stocks-in-2022-amid-fed-tightening-bloomberg-analyst\/","title":{"rendered":"# Bitcoin could outperform stocks in 2022 amid Fed tightening \u2014 Bloomberg analyst"},"content":{"rendered":"<p>&#8220;<strong># Bitcoin could outperform stocks in 2022 amid Fed tightening \u2014 Bloomberg analyst  <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>The Federal Reserve\u2019s signaling for tighter monetary policy in 2022 could provide short-term headwinds for risk assets such as stocks and cryptocurrency, but there\u2019s a good chance that Bitcoin (BTC) still comes out on top as investors recognize its value as a digital reserve asset, according to Bloomberg commodity strategist Mike McGlone.\u00a0<\/p>\n<p>The January edition of Bloomberg\u2019s Crypto Outlook described the Federal Reserve\u2019s plan to raise interest rates in 2022 as a possible \u201cwin-win scenario for Bitcoin [versus] the stock market.\u201d The reasons stem from the fact that the S&amp;P 500 Index is currently the most overextended above its 60-month moving average in over two decades and that Bitcoin is seeing growing mainstream <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eal as an inflation hedge.<\/p>\n<p>\u201cStretched markets have become common, but commodities and Bitcoin appear to be early reversion leaders,\u201d McGlone said. \u201cIt&#8217;s a question of bull-market duration, and we see the benchmark crypto coming out ahead.\u201d<\/p>\n<p>Minutes from the Federal Reserve\u2019s December policy meeting revealed on Wednesday that central bankers are ready to aggressively curb their stimulus support more quickly than previously expected. The plan, at least for now, includes three interest rate hikes in 2022 accompanied by a reduction in the Fed\u2019s balance sheet, which currently stands at nearly $8.3 trillion in Treasurys and mortgage-backed securities. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Markets may be overreacting short-term but looking beyond hard to overestimate how hawkish the Fed minutes were. <\/p>\n<p>QE reduction + 3 hikes OK, but 3 hikes + accelerated QT was not in anybody&#8217;s radar.<\/p>\n<p>\u2014 Alex Kr\u00fcger (@krugermacro) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/krugermacro\/status\/1479034014245830658?ref_src=twsrc%5Etfw\">January 6, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Although stimulus reduction is usually considered negative for risk assets, a broad category that includes equities and cryptocurrencies, McGlone believes Bitcoin is in a unique position to outperform in this environment:<\/p>\n<blockquote><p>\u201cCryptos are tops among the risky and speculative. If risk assets decline, it helps the Fed&#8217;s inflation fight. Becoming a global reserve asset, Bitcoin may be a primary beneficiary in that scenario.\u201d<\/p><\/blockquote>\n<p>Within the broader cryptocurrency market, the Bloomberg analyst said he expects the \u201cenduring trio\u201d \u2014 namely Bitcoin, Ether (ETH) and dollar-pegged stablecoins \u2014 to maintain dominance throughout the year.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-01\/38522582-53e9-4b91-8b70-f670b16a321e.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD is in a clear downtrend that has accelerated following the release of the FOMC minutes.\u00a0<\/em><\/figcaption><\/figure>\n<p>Data from Cointelegraph Markets Pro and <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.tradingview.com\/\">TradingView<\/a> showed a sharp decline in the value of Bitcoin on Wednesday following the release of the Federal Open Market Committee meeting minutes. The flagship cryptocurrency plunged below $43,000 for the first time since September and is currently down 8% over the past 24 hours. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-could-outperform-stocks-in-2022-amid-fed-tightening-bloomberg-analyst\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin could outperform stocks in 2022 amid Fed tightening \u2014 Bloomberg analyst &#8221; The Federal Reserve\u2019s signaling for tighter monetary policy in 2022 could provide short-term headwinds for risk assets such as stocks and cryptocurrency, but there\u2019s a good chance that Bitcoin (BTC) still comes out on top as investors recognize its value as&#8230;<\/p>\n","protected":false},"author":1,"featured_media":390498,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDEvOTdiMGI1ZDQtMTZmNi00ODY5LWJhODEtNzQxMmM3ZGY2NjZjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,75147,74863,70550],"class_list":["post-390497","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-bloomberg","tag-cryptocurrencies","tag-federal-reserve"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/390497","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=390497"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/390497\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/390498"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=390497"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=390497"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=390497"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}