Can Bitcoin Become “The Best Asset On Earth”? The expert bets on it – Tech Tribune France

The best risk asset of the last decade, Bitcoin, is in transition. Mike McGlone, senior commodities strategist for Bloomberg Intelligence, said in a recent interview with Kitco News’ “On The Spot.”

Related Reading | Arthur Hayes Says Ethereum (ETH) Could Hit the $10,000 Level by the End of the Year

This process is painful, as crypto investors can confirm, but could take the benchmark crypto to new heights. Over the past 6 months, the price of Bitcoin has fallen from an all-time high of $69,000 to its current level of around $30,000.

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In the short term, the pain was more pronounced with Bitcoin registering 9 consecutive weeks in the red. McGlone believes cryptocurrency and other risky assets are reacting to the current macro outlook.

The crypto market has seen some of the best performance in the global markets. The rally of the nascent asset class generally corresponds to 4-year cycles with parabolic bull cycles followed by multi-year bear markets.

Many in the industry believe that cryptocurrencies have entered their bearish phase or “Crypto Winter”. The losses were compounded by two factors: the start of economic tightening measures by the US Federal Reserve and the collapse of the Terra ecosystem.

In this sense, McGlone argued that Bitcoin and other cryptocurrencies have to face the greatest losses because they have recorded the greatest gains. This process is called “Mean Reversion” when an asset trends in one direction and then reverses towards a “mean” price or floor.

On the latter, the senior commodity strategist said it was “difficult” to calculate an exact low price. Bitcoin has moved in tandem with the Nasdaq 100, and both recently hit their 100-week moving average when BTC’s price fell to $30,000.

McGlone says the trends seem to be hitting further losses, but Bitcoin should “come out on top”. This potential rally will be fueled by “institutional supply,” as BTC continues to be adopted by global institutions, and due to the “inelastic supply” of the cryptocurrency.

What will take Bitcoin to $100,000

Despite its recent growth, McGlone claims that a small portion of investment firms have included BTC in their portfolio. This could change in the coming years as Bitcoin becomes a “global collateral” and begins a new climb towards $100,000 by 2024.

On BTC’s future price outlook and potential bottom, McGlone added:

I think $30,000 is a very good support pivot in Bitcoin. It basically needs equity to keep falling to bring it down. But what I feel is that (BTC) is pumping in good support and I expect it can reach $20,000 but I doubt it will, in the next two years it will come back and reach $100,000.

The current downtrend could be a good thing for some of the strongest projects in the crypto industry. This will help weed out speculative assets and leave those projects with strong fundamentals.

These projects could continue to gain market share in traditional markets. As the expert said, the crypto market only accounted for 0.5% of the global stock market capitalization. Now it’s around 1%.

In the coming years, as the economy turns deflationary and stocks trend lower, McGlone believes Bitcoin and gold will be two of the best assets to hold. However, the precious metal could lose market share to the number one crypto.

Related Reading | ARK Invest: despite the 9 red candles, “Bitcoin’s fundamentals remain solid”

At the time of writing, the price of BTC is trading at $29,700 with sideways movement in the last 24 hours.

BTC moving sideways on the 4-hour chart. Source: BTCUSD Tradingview

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Can Bitcoin Become “The Best Asset On Earth”? The expert bets on it – Tech Tribune France


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