Bloomberg analyst Mike McGlone has labeled Bitcoin (BTC) a “wild card” which is “ripe” to outperform once traditional stocks finally bottom out.
In a Wednesday post on Linkedin and Twitter, McGlone explained that while the United States Federal Reserve tightening will likely determine the direction of the stock market, Bitcoin remains a “wildcard” that could buck the trend, stating:
“Bitcoin is a wild card that’s more ripe to outperform when stocks bottom, but transitioning to be more like gold and bonds.”
The commodities strategist shared more details in a Wednesday report, which noted that Bitcoin was primed to rebound strongly from the bear market despite a “strong headwind” toward high-risk assets:
“It’s typically a matter of time for the fed funds gauge to flip toward cuts, and when it does, Bitcoin is poised to be a primary beneficiary.”
The report notes that while Bitcoin would follow a similar trend to treasury bonds and gold, Ether (ETH) “may have a higher correlation with stocks.”
The Federal Reserve’s increased quantitative tightening comes amid several major interest rate hikes throughout 2022, with the most recent spike accounting for a 75 basis points increase on July 27.
While it is not known exactly when the Fed’s quantitative tightening will end, some economists predicted the endpoint will begin “at some point in 2023” according to a Bloomberg article published in August.
Quantitative tightening is a contractionary monetary policy tool that is used by central banks to reduce the level of money supply and liquidity in an economy, which can reduce spending across markets such as stocks.
Despite Bloomberg’s bullish take, however, other experts believe that Bitcoin and equity markets have actually become more correlated than before.
Cointelegraph contributor Michaël van de Poppe recently said the correlation between the S&P 500 index and BTC was approaching 100%, while a number of IMF economists claimed to have seen a 10-fold increase in correlation between crypto and equity markets in some regions of the world.
American music giant Sony Music Entertainment has signaled intentions to utilize nonfungible tokens (NFTs) after filing a trademark application covering music and artists under the Columbia Records logo.
According to an Aug. 30 trademark application to the United States Patent and Trademark Office (USPTO) shared by trademark attorney Mike Kondoudis on Tuesday, the application covers “audio and video recordings featuring live musical performances authenticated by NFTs.”
The application also covers marketing services, promotion, distribution, marketing, advertising and online entertainment, including podcasts and audiovisual recordings.
The new trademark application comes in the wake of several other Sony Music-backed NFT projects.
In August, MakersPlace, an NFT market dedicated to digital art, secured $30 million in Series A financing from several notable companies, including Pantera Capital, Bessemer Venture Partners, Coinbase Ventures and Sony Music Entertainment.
March saw the music company partner with Solana-based NFT marketplace Snowcrash and fellow music behemoth Universal Music Group to release Bob Dylan and Miles Davis NFT collections at some point in 2022, with plans for more in the future.
NFTs and the Metaverse are slowly becoming more prominent in the music and entertainment industry.
MTV’s Video Music Awards on Aug. 29 heavily featured online and virtual performances, including Eminem and Snoop Dogg performing their new single in a Metaverse created by Yuga Labs, the same company behind the Bored Ape Yacht Club.
The song From the D to the LBC was released in June and features two Bored Ape Yacht Club avatars owned by Eminem and Snoop Dogg.
MTV’s Video Music Awards also debuted a new award category, Best Metaverse Performance, which featured nominations for six different acts in its inaugural year, Ariana Grande, Justin Bieber, Charli XCX, Twenty One Pilots, BTS and Blackpink, who eventually won.
The United Kingdom’s independent advertising regulator has upheld a complaint involving former reality show Love Island contestants Eve and Jessica Gale for “triviali[zing] investment in cryptocurrency.”
In a Wednesday notice, the U.K. Advertising Standards Authority, or ASA, said the reality stars promoted crypto in an Instagram story in June at the request of an influencer named Elizabeth O'Donell and upheld claims the ad was “misleading” and “irresponsible.” According to the regulator, O'Donell was not only providing trading crypto advice — as the Gales’ stories claimed — but promoting investing in cryptocurrencies without illustrating the possible risks.
“We therefore considered the ads were addressed to a general audience who were unlikely to have any specialist knowledge of investing in cryptoassets,” said the ASA. “In the absence of any other information to the contrary, we considered that consumers would interpret the overall impression from the ads to mean that investment in cryptoassets was simple and risk free, even to those consumers who had only limited knowledge of cryptoassets.”
The regulator said because the ads were not “prepared with a sense of responsibility,” they violated the U.K. Code of Non-broadcast Advertising, Sales Promotion and Direct Marketing, adding the Gales’ story did not mention the possibility crypto prices “could go down as well as up” as well as their largely unrelated status in the United Kingdom. The ASA also alleged O’Donell and the Gales “took advantage of consumers’ inexperience or credulity” by not including information on capital gains taxes required to be paid on crypto profits.
In its ruling, the ASA said the Gales could not post the crypto ads “in the form complained about” again, but did not bar the twins from promoting digital assets in future advertisements on social media. At the time of publication, Jessica and Eve Gale had a combined following on Instagram of more than 1.7 million accounts.
The advertising authority has investigated and removed many crypto-related advertisements in the United Kingdom since 2021, banning posters for cryptocurrency exchange Luno in the London Underground and on city buses for being misleading, an ad from Coinfloor for allegedly targeting retirees in the Northamptonshire Telegraph newspaper and online campaigns from major firms including Coinbase, Kraken and eToro. On Aug. 1, the U.K. Financial Conduct Authority announced new rules aimed at tackling "misleading adverts that encourage investing in high-risk products," but did not include crypto-related promotions.
This Daily Dose was brought to you by Cointelegraph.