Bloomberg Senior Commodity Strategist Mike McGlone expresses bullish sentiment on crypto assets once inflation is eliminated.
McGlone said in an interview that he expects Bitcoin (BTC), Ethereum (ETH) and other crypto assets to “come out on top” once deflation sets in following the rate hike interest of the Federal Reserve in containing inflation.
“[The Fed hiking rates is] is going to lead to very good, more productive markets where stock markets are no longer rising on bad news. They fall on bad news and rise on good news, which means the Fed isn’t just there to rescue them.
But it is the sustained deflationary period that I fully expect where Bitcoin and cryptos will come out on top. Ethereum and the rest of the space, mainly because of technology. Bitcoin because it’s better than gold in some ways in a world going digital…”
According to Bloomberg Intelligence’s senior commodities analyst, deflation is likely to set in over the next 12 months as the Federal Reserve is unlikely to ease monetary policy.
“We are in this major inflationary spiral. In a year, it will be deflation. But it will last a long time. Because here’s a key reason why – human nature.
The Fed will never, ever ease. I can say that, unless we have some serious weirdos running the place, like they have in the past, because of the mistake we made and they made for the last two years – by slacking off too much. They will never do that.
The days of the Fed being there when the stock market goes down are over. We are going to have to witness a major correction. That’s why I think we’re going to get this transition into a severe recession globally. It is already happening. In the United States, deflation… Bitcoin comes out on top.
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