Mike McGlone: Bitcoin Is on the Verge of Recovery
Bitcoin and many other leading digital currencies all appear to have calmed down in recent days. The assets went through a steady series of dips that ultimately saw most of 2021’s gains vanish into thin air, but at press time, these currencies and many like them have seemingly managed to retain at least some of the momentum they’ve experienced over the last few days, and much of the bear behavior appears to have died down.
Could Bitcoin Be Heading into a Recovery Stage?
Most of this can be attributed to stricter economic policies imposed by the Federal Reserve. The Fed has been slowly hiking interest rates as a way of combating inflation and to make up for all the COVID-related spending that was witnessed roughly two years ago. With the pandemic now over, many financial agents are working to bring the United States back on track, which has ultimately caused bitcoin to travel south.
But now that things are apparently recuperating, Mike McGlone – a senior commodity strategist at Bloomberg – has stated that he thinks bitcoin is going to be one of the best assets to own, and he feels sorry for anyone that doesn’t have the digital currency as part of their portfolio. In an interview, he claimed:
I think some of the best assets will be gold, U.S. long bonds, and bitcoin. The great reversion is just getting started.
He is fully convinced that both bitcoin and Ethereum will be outperforming in the coming months and years. He continued his interview with:
Right now, I fully expect bitcoin to trade lower. I don’t know how much lower… but what I fully expect is that when we see the foundation form, which is going to happen, bitcoin and Ethereum should come out ahead because they’ve outperformed for so long.
Inflation has jumped to a 40-year high under Joe Biden, who at this stage can easily be labeled as America’s weakest and most incompetent leader. While inflation has recently seen a slight dip to about 8.3 percent at the time of writing, things are still looking rough in that neck of the woods.
McGlone explained that while the rate hikes look bad on paper, they are in fact doing great things for the country and are necessary to combat the rising food and gas prices that have been witnessed all over the nation. He mentioned:
Federal Reserve rate hikes are addressing the need for inflation and risk assets to decline, and once things stabilize, we see bitcoin coming out ahead.
Rate Hikes May Go Down Again in Two Years
Ray Dalio – a billionaire investor – thinks that the Fed will again begin cutting rates as soon as 2024 arrives and another presidential election is around the corner. He stated:
We are in a tightening mode that can cause corrections or downward moves to many financial assets.
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