Bitcoin is more likely to transition from a risk-on to a risk-off asset within the second half of 2022, because the macroeconomic atmosphere is quickly shifting in direction of a recession, mentioned Mike McGlone, senior commodity strategist at Bloomberg, in a latest interview with Cointelegraph. McGlone predicted:
“ I see it transitioning to be extra of a risk-off asset like bonds and gold, then much less of a risk-on asset just like the inventory market.”
In accordance with the analyst, the crypto market has flushed out many of the speculative excesses that marked 2021 and it’s now ripe for a recent rally. McGlone additionally identified that the Fed’s aggressive mountain climbing of rates of interest will lead the worldwide financial system to a deflationary recession, which is able to in the end favor Bitcoin:
“I totally count on we will have a reasonably extreme recession globally, which most likely will make Bitcoin shine […] together with gold and U.S. Treasury lengthy bonds.”
Do not forget to take a look at the complete interview on our YouTube channel and remember to subscribe!