Bloomberg’s senior commodity strategist thinks current geopolitical tension in Eastern Europe and the current macroeconomic backdrop may not be a bad thing for Bitcoin (BTC) and Ethereum (ETH).
Mike McGlone says on Twitter that the current macroeconomic environment including rising inflation and asset prices may keep the values of Bitcoin and Ethereum afloat this year.
“Digital-asset stalwarts Bitcoin, Ethereum and the proliferation of crypto dollars may find a firm foundation in 2022 on elevated inflation and asset prices, along with tension surrounding Russia and Ukraine. The number one crypto is showing divergent strength vs. equities.”
According to McGlone, the eruption of an armed conflict in Europe could prove to be beneficial for the US dollar. He also notes that Ethereum-powered, dollar-pegged stablecoins may buoy ETH’s price.
“The fact that Ethereum made crypto dollars possible, along with the escalating use of the technology to transact greenbacks, supports Ethereum’s price.”
The commodity strategist does think this week could be rough for BTC, however.
“Bitcoin indicating a rough week ahead – inflation unlikely to drop unless risk assets do. Most assets are subject to the ebbing tide in 2022, on the inevitable reversion of the greatest inflation measures in four decades, but this year may mark another milestone for Bitcoin.”
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