Mike McGlone Discusses U.S. Commodities Market

Mike McGlone, the senior commodities strategist for Bloomberg Intelligence, shared insights on the U.S. commodities markets and its potential impact on the Federal Reserve’s tightening decisions via a recent tweet.

Doubts on Fed’s Easing Policy

In his tweet, McGlone highlighted the rising trends in cryptocurrencies, commodities, and stocks while pointing out persistent inflation and low unemployment. He suggests that these factors may pose challenges for the Fed’s monetary policy as of February 2025.

> “Rebounding Commodities Could Fuel Fed Tightening – The #stockmarket and #cryptocurrencies are creating massive presumed wealth, #inflation is sticky, unemployment has stopped rising, and #commodities have turned higher. Is this an environment for #FederalReserve easing?”
> — Mike McGlone (@mikemcglone11) February 21, 2025

McGlone questioned whether this is an environment suitable for Federal Reserve easing, hinting at his skepticism regarding the continuation of dovish policies. This could mean the Fed may keep interest rates steady or raise them, potentially negatively impacting crypto prices. Historically, Bitcoin tends to rise when rates are eased, followed by altcoins.

Thus far, the Fed’s decision to maintain interest rates at 4.25-4.50% reflects its concerns about balancing inflation and employment within current economic conditions.

Kiyosaki on Bitcoin Resilience

Robert Kiyosaki, the author of the bestselling book “Rich Dad Poor Dad,” tweeted predictions of a massive market crash affecting all major assets, including stocks, bonds, real estate, gold, silver, and Bitcoin. Despite this forecast, Kiyosaki plans to hold onto his Bitcoin, saying, “I will back up the truck and buy more.” He believes Bitcoin will be the only asset capable of recovering and rising to new highs quickly post-crash.

After a recent 2.58% surge, Bitcoin faced a sharp decline, losing nearly 1% with its current price at $98,590 per coin.