According to Mike McGlone, Senior Commodity Strategist at Bloomberg Intelligence, once this bear market for risky assets is overcome and prices rebound, Bitcoin will outperform other asset classes. When it comes to gold, McGlone says it’s bullish.
Some of the best assets, according to McGlone: Gold, US bonds, Bitcoin
, Mike McGlone said in an interview that markets have a ‘big retracement’ which means prices are turning up. He says he’s about to witness the ‘return’. “I think what’s going to happen is that the big turn is just beginning,” says McGlone, adding that it could be like after 1929, 2008 or 1987.
McGlone says Bitcoin will be ‘one of the best assets on the planet’ once risk assets start to recover. “This is my base case,” said the analyst, who thinks some of the best assets will be gold, US long-term bonds and Bitcoin.
“Bitcoin and Ethereum need to stand out”
Analyst says the leading cryptocurrency is on track to reach $100,000 by 2025 He argues that, but also states that BTC may trade lower than its current position, especially since Bitcoin and NASDAQ are still tightly correlated. McGlone explains his thoughts as follows:
I’m totally waiting for Bitcoin to trade lower right now. I don’t know how much lower. But exactly what I was expecting is that when we see the fundamental form that is going to happen, Bitcoin and Ethereum should stand out because they have outperformed for so long.
McGlone: In 2 years, Bitcoin will go to 100 thousand dollars!
Kriptokoin.com Mike McGlone, whose accurate predictions can be seen in this article, states that $30,000 is a very good support pivot in Bitcoin. “It could go to 20,000, I doubt it,” said the analyst, but predicts it will fully bounce back and hit $100,000 in the next two years. According to the analyst, it’s only a matter of time.
When asked why Bitcoin does not act as a safe-haven asset and as a hedge against inflation, McGlone replied, “This is a transitional period. It must be one of the most important risk-prone assets in human history. That needs to clean up some of the risk. What I’m seeing is a transition to a risk-averse asset,” he says.
Deflation or inflation?
Mike McGlone thinks this massive return in asset prices will be followed by deflation, not further inflation. According to the analyst, we go back to deflation, and the best way to achieve deflation is to have a spike in prices and then clean them up and that’s what we do. McGlone puts it this way:
We are in the early days of blushing. You just look at the stock market. The fact that it is facing more and more Fed tightening and is already down 30% is something most people who have invested in the past 40 years have not seen. This is the new world.
McGlone notes that a sign of impending deflation could be seen in the crude oil markets. “Crude oil is playing as it was in 2008. It peaked on July 3 and dropped to $40 at the end of the year. This triggered massive deflation. I see parallels this year,” he says. Also, according to the analyst, long-term technological developments will further increase deflationary pressures. McGlone explains the reason for this as follows:
The basic truth is that rapidly advancing technology is massively deflationary. We’re just taking a hit with this trend. The basic truth most people need to understand is that about a year ago, the US money supply jumped to its highest level ever on an annual basis. It was 26%. Now he is returning. That’s the number one factor in all inflation: the money supply goes back, everything comes back, it goes back to normal.
“What the price of gold needs is a key inflection point”
When it comes to gold, McGlone shows that it is bullish and gold is needed. states that what he heard was a key inflection point. The analyst explains his predictions as follows:
What will the gold price be? Gold will come out when we see a small peak in long-term bond yields, a small end to all these marching expectations from the Fed, and a lower stock market.
