Bloomberg Strategist Says Greatest Rug Pull of Liquidity Ever Pushing US Into Recession and Bitcoin Into Correction

Bloomberg Intelligence’s senior macro strategist Mike McGlone says that a liquidity crunch will soon push the economy into a recession and cause a Bitcoin (BTC) correction.

In a new interview with crypto influencer Scott Melker, McGlone predicts that the Federal Reserve will remain hawkish at least for the rest of 2023 to draw down inflation and that will cause risk assets like Bitcoin to plummet.

“What we’re doing now is the greatest rug pull in liquidity ever after the biggest pump in liquidity ever. And the fact that I can say that and show the data is still shocking to me.”

McGlone says that many economists who predicted the US would have entered a recession by now due to the Fed’s aggressive rate hikes have pushed out their timeline to the end of the year. He believes the high-interest rates will cause bond yields and the stock market to drop.

“I can go back and give you examples from the 1920s when the US created massive supply of liquidity and they shouldn’t have. So, money supply is still negative, PPI (producer price index) year-over-year is still negative and the Fed is still hiking rates. Everything else is going to trickle down from that and the Fed is not going to stop…

I fully expect bond yields, everything to drop after the stock market does and the question is, What stops it? On our call this morning, even our main economist said, yes, they’ve been early, there have been a little bit wrong, but they’re still maintaining their year-end recession view.

So let’s picture ourselves in December. Recession’s kicking in. People are hoping the Fed will ease and they’ll probably going to say, No we’re not, because we still see high inflation. That’s something we haven’t seen in a while.”

The analyst predicts that Bitcoin will collapse later this year as liquidity declines.

“What should be early indications of [recessionary times]? What was the biggest liquidity pump indicator, new technology ever for the last 10 years? Cryptos. The best indication should be Bitcoin and that’s where I’m looking for the bleeding occasion from Bitcoin and it’s still kind of showing what I expected. It got up to near $30,000 and it’s just not been able to get much above there.”

Bitcoin is trading for $29,656 at time of writing, up 1.0% in the last 24 hours.

I

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

Source: https://dailyhodl.com/2023/08/14/bloomberg-strategist-says-greatest-rug-pull-of-liquidity-ever-pushing-us-into-recession-and-bitcoin-into-correction/