While crypto markets have suffered considerably since early May,

gainst risk-on-assess is cleaning the most speculative assets like meme coins.

Mike McGlone, Chief Commodity Strategist at Bloomberg Intelligence, predicted that declining volatility vis-à-vis equity markets will allow Bitcoin and Ethereum to come out ahead.

While crypto markets have suffered considerably since early May, the bearish conditions may only last for a limited time and there are signs that the decline is coming to an end or at least easing. In a recent interview with Yahoo Finance, Bloomberg Intelligence Chief Commodity Strategist Mike McGlone expressed his belief that even if emerging crypto markets suffer along with the S&P 500, the former will come out on top.

The recent crash was fueled by the Fed's anti-inflation measures

McGlone explained that the current performance of the stock and crypto markets was due to the Federal Reserve's fight against inflation. A Bloomberg strategist predicts this trend will continue. He found that crypto assets are some of the riskiest assets, and the most speculative ones, including meme coins like Doge, are being cleaned.

“The Fed sells calls. They need risky assets to go down to reduce people's ability to buy or inflation won't go down and some of the riskiest and most speculative assets have been cryptocurrencies. So what we're doing is finally cleaning up things like dogecoins and Shiba Inus."

He added that the tokens that will survive this purge are those that have proven infrastructure and products that people actually use, citing use cases such as Ethereum's involvement in NFTs and tokenization. Accordingly, he predicted that Bitcoin and Ethereum will eventually come out stronger.

McGlone predicted increased user involvement in the two tokens and explained a situation where investors would not want to miss out on the revolution. The revolution in question was also linked to the fact that Amazon's currently lucrative stock had a similar level of volatility in 2009 to Bitcoin today. Bitcoin's 260-day volatility on May 13 was 70%, about the same ratio as Amazon stock in 2009.

“…remember that if the stock market continues to decline…Bitcoin and Ethereum will decline, but they will come out ahead and the key factor I can point to is that the volatility of these nascent cryptoassets, especially Bitcoin, continues to decline. decline compared to the stock market. That's what happened with Amazon when it first came out,” said a commodities strategist at Yahoo Finance.

Overall, McGlone believes Bitcoin will come out ahead after the Fed tackles inflation as the major crypto-token becomes a global digital collateral.

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While crypto markets have suffered considerably since early May,

Mike McGlone, Chief Commodity Strategist at Bloomberg Intelligence, predicted that declining volatility vis-à-vis equity markets will allow Bitcoin and Ethereum to come out ahead.

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