Bloomberg strategist says Bitcoin, Ethereum and Crypto will outperform when one macro event unfolds
Bloomberg’s closely followed senior commodity strategist, Mike McGlone, expresses bullish sentiment on cryptoassets once inflation is wiped out.
McGlone says in an interview that he expects Bitcoin (BTC), Ethereum (ETH) and other cryptoassets to “come out” when deflation sets in as a result of the Federal Reserve raising interest rates to curb inflation.
“[The Fed hiking rates is] is going to lead to really good, more productive markets where stock markets don’t go up on bad news anymore. They go down on bad news and up on good news, which means the Fed isn’t just there to bail them out.
But it is the sustained period of deflation that I fully expect Bitcoin and crypto to emerge from going forward. Ethereum and the rest of the space, mostly because of the technology. Bitcoin because it is better than gold in some ways in a world that is going digital…”
According to a senior commodities analyst from Bloomberg Intelligence, deflation is likely to come in the next 12 months as the Federal Reserve is unlikely to ease monetary policy.
“We are in this great spiral of inflation. In a year there will be deflation. But it’s going to be a long time. Because here is an important reason for that – human nature.
The Fed will never ease, ever. I can say this, unless we have some serious weirdos running the place, as they did in the past, because of the mistake we’ve made and they’ve made in the last two years – easing up too much. They never will.
The days of the Fed being there when the stock market goes down are over. We need to see a big correction. That’s why I think we’re going to have that transition to a severe recession globally. It’s already happening. In the US, deflation…Bitcoin comes out ahead.”
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