The cryptocurrency market is known for its volatility, with prices fluctuating rapidly and frequently. Bloomberg’s macro strategist Mike McGlone shared his insights on the future of the crypto market. He predicts that crypto holders will soon start to move their investments into gold as a safer store of value due to a looming recession.
Bear Markets Are Not Yet Over
According to McGlone in his interview with Scott Melker, bear markets do not end quickly but rather gradually. It takes years of pessimism before its cycle is completed. With that in mind, he believes that the cryptocurrency market is headed for years of pessimism, which means that the bear markets are likely not yet over.
Crypto Holders Will Jumpship to Gold
As a result of the impending recession, the Bloomberg analyst predicts that crypto traders will start to turn their attention to gold. He believes that people will fear missing out on the opportunities that gold provides and will move their money from digital assets to precious metals. Gold tends to perform well during recessions and is considered a safer store of value than cryptocurrencies.
McGlone refers to gold as “Boomer rocks,” meaning that it is a tried and tested asset that has stood the test of time. Gold has been used as a store of value for centuries and is a reliable option for investors looking to protect their wealth during times of economic uncertainty. He predicts that the influx of crypto holders moving their wealth into gold will create a self-fulfilling prophecy, driving up the price of gold even further.
The Fed Wants People to Lose Money
Bloomberg’s macro strategist believes that the Federal Reserve wants investors to lose money, and he predicts that the stock market will go down as a result. He advises traders to turn their attention to Treasury bonds, which are currently experiencing increasing yields. The analyst predicts that, besides gold, the only other bull market on the horizon is in Treasury bond yields.
The Future of Crypto
McGlone’s predictions about the future of the crypto market are sobering. He believes that the market is headed for a bear cycle, and crypto traders will start to move their wealth into safer assets like gold. The impending recession will only exacerbate the situation, as investors look for ways to protect their wealth. Meanwhile, others will simply be driven by FOMO as the price of gold will show a climb.
However, it is important to keep in mind that FOMO, or the fear of missing out, can lead investors to make hasty decisions that may not be in their best interest. While gold may be a safer option during times of economic uncertainty, it is essential to conduct thorough research and analysis before making any investment decisions.
McGlone’s insights should not be taken lightly. As a macro strategist, he has a deep understanding of economic cycles and how they impact various asset classes. His predictions about the future of the crypto market, despite being worrying in nature, provide valuable insights for investors looking to protect their wealth during uncertain times.
Giancarlo is an economist and researcher by profession. Prior to his addition to Blockzeit’s dynamic team, he was handling several crypto projects for both the government and private sectors as a Project Manager of a consultancy firm.