Macro Strategist Speaks After Bitcoin’s Surge, Warns of “Death Spiral”
Speaking to Bloomberg, macro strategist Mark Cudmore evaluated the latest developments in the cryptocurrency market and their possible impact on stock markets.
According to Cudmore, the situation of companies holding digital assets, in particular, remains a source of concern in the markets.
Cudmore stated that the “pain” in the crypto market is not over yet, highlighting the dynamic created by companies like MicroStrategy, which hold significant amounts of Bitcoin on their balance sheets. While MicroStrategy's announcement that it has a reserve fund to cover the next 14 months of dividend payments is a relief for the markets, Cudmore remains cautious about the overall picture.
According to the analyst, digital asset-focused companies and their ETFs create a “multiplier” effect that amplifies market movements in both directions. He warned that if share prices fall below the value of crypto assets, these companies may be forced to sell their holdings, creating a “negative death spiral.”
Cudmore said the possibility of a “hawkish interest rate cut” from the Fed next week and the decline in the cryptocurrency sector, which could negatively impact individual investors, could hinder the expected year-end rally.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Hyperliquid’s Growing Influence in Crypto Trading: Enhancing Investor Access and Entry Methods in an Evolving Market
- Hyperliquid dominates 2025 crypto market with 73% DEX perpetual trading share via fee cuts, stablecoin integration, and institutional partnerships. - USDH stablecoin (backed by USD/Treasury) and HyperEVM infrastructure position it as "AWS of liquidity" for on-chain finance developers. - 78% user growth and 1.75M HYPE token unlock resilience highlight its scalability, though stablecoin regulations and market volatility pose risks.
PENGU Token Price Rally: Examining Brief Upward Trends and Institutional Indicators Towards the End of 2025
- PENGU token surged past $0.0100 in late 2025, driven by Bitcoin's rebound and institutional inflows totaling $430,000. - Technical indicators show conflicting signals: overbought RSI (73.76) vs. positive MACD/OBV, with critical support at $0.009. - $66.6M team wallet outflows contrast with institutional accumulation, raising sustainability concerns despite short-term bullish momentum. - Macroeconomic factors like Fed policy and Bitcoin correlation amplify PENGU's volatility, complicating long-term price
LUNA Rises 1.13% Amid Progress on U.S. Lawmaker’s Stock Trading Ban
- LUNA rose 1.13% in 24 hours amid U.S. political pressure to ban congressional stock trading, despite an 82.66% annual decline. - Rep. Anna Paulina Luna advanced the bipartisan Restore Trust in Congress Act, which would prohibit lawmakers and families from trading individual stocks. - The bill faces bipartisan opposition over financial flexibility concerns but has 100+ supporters, including conservatives and progressives, seeking to close ethics loopholes. - Critics argue the 2012 STOCK Act lacks sufficie
BCH Rises 9.13% Over 24 Hours as Overall Market Trends Upward
- Bitcoin Cash (BCH) surged 9.13% in 24 hours, with 10.08% monthly and 37.01% annual gains, signaling sustained bullish momentum. - Analysts attribute the rise to BCH's utility in cross-border payments, low fees, and institutional interest as a Bitcoin layer-2 solution. - No immediate catalysts (regulatory shifts, partnerships) were identified, suggesting market sentiment and macro trends drive the rally. - Experts highlight BCH's structural strengths and active development, positioning it to outperform br
Trending news
MoreCrypto prices
More
