Mike McGlone, senior commodities analyst at Bloomberg, predicts an economic disaster in which gold, US bonds and the crypto market could rise from the ashes much stronger than before.
In a recent interview with Kitco News, McGlone said he predicts a “huge reversal,” or deep correction, in risky assets like real estate and equity markets.
“I think the big comeback that is about to happen is just getting started. It might be like after 1929, but I think it’s going to be like after 2008, or maybe after the downfall of 1987. The biggest inflation in most people’s lives in 40 years is just getting started.
Once we get through this period, I think it will be realized that Bitcoin is one of the best assets on the planet. This is my basic opinion…
I think some of the best assets to own would be gold, US long bonds and Bitcoin. I think we’re going back to deflation.”
On the other hand, the senior commodity strategist is of the opinion that it is “difficult” to calculate a full bottom price. Bitcoin is moving along with the Nasdaq 100 and both recently reached their 100-week moving averages when the price of BTC dropped to $30,000. On BTC’s future price outlook and potential bottom, McGlone added:
“I think $30,000 is a very good support pivot for Bitcoin. Basically, it needs equity to continue downward. […] It could reach $20,000, but I doubt it, it will come back to $100,000 in the next two years.”
Besides, the analyst says that with the resurgence of the crypto markets, Ethereum (ETH) has taken its place on the table along with Bitcoin. To highlight the importance of Ethereum, McGlone pointed to huge crypto sectors such as stablecoins and immutable tokens (NFTs) that rely on the network.
“Ethereum is revolutionizing the world of fintech and tokenization. To me, the question of what is stopping tokenization is important, you are looking at NFTs, most of them are based on Ethereum tokens. Right now yes, there are some competitors, but that shows you what’s going on in the field.”
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Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.