Bloomberg’s senior commodity strategist thinks that investors who can overcome their fear, uncertainty and doubt (FUD) and buy into Bitcoin (BTC) now might reap major rewards in the future.
In a new interview, analyst Mike McGlone discusses how current geopolitical events are impacting the commodity markets, including Russia’s ongoing incursion into Ukraine.
[adinserter block="1"]When asked why Bitcoin, which is typically seen as a hedge against instability, didn’t rise but instead sharply crashed as news of Russia’s actions reverberated globally, the analyst says it’s because the commodity markets were due for a widespread correction.
He also says that buying opportunities remain.
“People should remember this for a lot of positions. This is a tremendous opportunity, most notably for people who have maybe raised a little bit of cash.
We’ve been pointing this out for months that the market is way overdue for a pretty significant correction, most notably in terms of equities. We’re [also] getting that correction in cryptos.”
McGlone goes on to say that Bitcoin and other cryptocurrencies are still risk assets and therefore investors should be prepared for volatility. He thinks that those who buy in now could end up winning down the road.
“I still think there’s more pain there. I don’t think Bitcoin gets much below $30,000, it’s holding good resistance around $40,000.
I think this is ultimately going to be a very good buying opportunity for Bitcoin. For longer-term traders, it’s going to be looked back upon in history as a defining moment.
The key point is right now we’re in that stage where you’ve got to hit the bid on things you might not want to.”
Bitcoin has recovered from its overnight plunge to below $35,000. BTC is up 4.69% on the day and trading for $38,843 at time of writing.
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