Bloomberg’s closely followed senior commodities strategist, Mike McGlone, is expressing bullish sentiment on crypto assets once inflation is wiped out.
McGlone says in an interview that he expects Bitcoin (BTC), Ethereum (ETH) and other crypto assets to “come out ahead” once deflation sets in as a result of the Federal Reserve hiking interest rates to contain inflation.
“[The Fed hiking rates is] going to lead to a really good, more productive markets where stock markets don’t go up on bad news anymore. They go down in bad news and up on good news, meaning the Fed’s not just there to save them.
But that’s the enduring deflationary period I fully expect where Bitcoin and cryptos are going to come out ahead. Ethereum and the rest of the space, mostly because of the technology. Bitcoin because it’s better than gold in some ways in a world that’s going digital…”
According to the senior Bloomberg Intelligence commodities analyst, deflation is likely to set in over the next 12 months since the Federal Reserve is unlikely to ease monetary policy.
“We’re in this major inflationary spiral. A year from now, it’s going to be deflation. But it’s going to last a long time. Because here’s a key reason why – human nature.
The Fed will never ease, ever. I can say this, unless we have some serious weirdos running the place, like they did in the past, because of the mistake we’ve made and they made the last two years – by easing too much. They will never do that.
Those days of the Fed being there when the stock market goes down are over. We’re going to have to see a major correction. That’s why I think we’re going to get that transition to a severe recession globally. It’s already happening. In the US, deflation… Bitcoin comes out ahead.”
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