Bloomberg Analyst McGlone Predicts Potential Bitcoin Decline in Event of Market Bubble Burst
Renowned commodity analyst Mike McGlone from Bloomberg has provided insights into the potential impact of a market bubble burst on Bitcoin (BTC), the historically best-performing asset.
McGlone stated that a bubble burst event in the markets could lead to a downward turn for Bitcoin. He further explained his views on the Bitcoin price, saying, “The Fed funds rate, which is currently around 2% above the Consumer Price Index, is restrictive compared to the 20-year average of minus 1%. However, rising fiscal deficits seem unstoppable, causing me to lean towards gold continuing its rally against most commodities and perhaps stocks in the second quarter of the year.”
Regarding the risks associated with Bitcoin, McGlone mentioned that it was at the top of his annual performance scorecard for the first half of the year, while the Bloomberg US Treasury 20+ total return index was at the bottom. He suggested that there could be some comeback for Bitcoin in the second half of the year, stating, “If commodities follow a normal path towards low pricing and risk assets rise slightly, there could be a trend towards deflation worthy of inflation reaching 2022 highs.”
At present, Bitcoin is experiencing a loss of approximately 3.49% for the week.
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*This article does not constitute investment advice.
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