A bitter cold has set in for the cryptocurrency market, with flagship digital asset Bitcoin (BTC) falling around 35% since January. As a result, many people wonder how far the market is in a crypto winter and whether or not there are signs of spring.
Speaking to Kitco News, senior commodities strategist at Bloomberg Intelligence, Mike McGlone, opined that once this bear market for risky assets fades and valuations recover, cryptocurrencies will outperform all other asset classes.
Previously, McGlone said that Bitcoin was on course to hit $100,000 by 2025, and when asked what is pulling investors out of the crypto winter and what needs to happen to trigger a Rallye. The commodity strategist said:
“I think what’s going to happen is the great reversion is just beginning. It could be like after 1929, I think it’s going to be like after 2008 maybe like after the 1987 crash, it’s is so overdue The greatest inflation of 40 years in most people’s lives is just beginning.
“Once we get through this period, I think Bitcoin is going to realize that it’s one of the best assets on the planet to hold. Now that’s my base case scenario and how it works I don’t know so I see my outlook is I think some of the best assets to own will be US gold long bonds and bitcoin I think we go back to deflation.
Bitcoin and the Crypto Winter
Indeed, with Bitcoin not reacting to inflation and other macroeconomic factors as most cryptocurrency proponents had expected, it hurts Bitcoin’s long-term case.
“It’s just a matter of time, it’s just the way it works, but as far as the things I look at like commodities and assets, they’re just in the early days of their back and bitcoin should be one of those that comes out on top.”
He continued, “I think the best performing assets will go to gold, US long bonds and Bitcoin, I think they will be the best performers.”
Notably, the commodity specialist expects the assets to all break out at some point in the near future.
For McGlone, the price of gold will break out once markets see that long bond yields have peaked and Fed hike expectations have been suspended, which he says will do with a stock market. lower.
Only then will gold and bond prices return, climbing higher, and he predicts the same for Bitcoin.
Look: Bitcoin will become one of the best assets on earth
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