Bloomberg strategist: Bitcoin is starting to shine as indestructible

Bloomberg Intelligence Senior Macro Strategist Mike McGlone recently joined David Lin on his YouTube show to discuss his bullish view on Bitcoin (BTC), especially amid the looming economic recession. McGlone expressed confidence in the flagship cryptocurrency, believing it will outperform most risk assets as it continues to mature.

According to McGlone, the ongoing banking crisis is what defines Bitcoin’s value. He expects the digital asset to continue to outperform most other cryptocurrencies, especially those listed on the Bloomberg Galaxy Crypto Index. This index, which excludes stablecoins, exchange tokens and privacy coins, consists of the largest and most liquid digital assets by market capitalization and undergoes monthly reconstruction and rebalancing.

However, McGlone warned that Bitcoin’s price could temporarily fall due to the tide going out in all risk assets. Despite this short-term concern, he remains optimistic about its long-term potential. Although Bitcoin fell short of its $100,000 target during the 2021 rally, peaking around $70,000, McGlone is confident that the cryptocurrency will eventually return to its upward trajectory.

In the interview, McGlone emphasized Bitcoin’s unique characteristics, including its diminishing supply and low adoption rate in its early stages. He sees the potential for Bitcoin to become a global digital security, despite possible regulatory challenges and bumps in the road. Recently, Bitcoin has shown remarkable resilience, solidifying its status as an indestructible resource. McGlone also noted the recent and ongoing demonstration of Bitcoin’s resilience, referring to it as “irreparable.”

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McGlone emphasized that savvy investors and institutions are increasingly recognizing the need to include Bitcoin in their portfolios, suggesting that by 2024 the focus will shift toward a severe recession and political leanings, making it an excellent setup for Bitcoin.

During the interview, McGlone explained that savvy investors and institutions around the world are realizing the importance of incorporating Bitcoin into their assets with each passing day. He also expressed enthusiasm for the future.

As Bitcoin continues to establish itself as a global digital reserve asset, McGlone recognized its potential to become a store of value amid high volatility in the stock market. He noted that the reaction of Bitcoin’s price relative to the S&P 500 movement would be a key indicator of its future performance.

He stressed that if the S&P 500 made new lows and headed towards 3,000, it would be interesting to observe Bitcoin’s reaction. Ideally, Bitcoin’s price would not fall below $20,000 under such market conditions.

McGlone also discussed his long-term outlook on Bitcoin’s price, suggesting that more significant signals could indicate a potential rise to $100,000. However, he admitted to being bearish on the stock market, particularly the S&P 500, which he considers the primary measure of risk assets worldwide . He stated that he needed to see how the stock market situation unfolds before taking a more bullish stance on Bitcoin.