Bloomberg commodity strategist Mike McGlone tells his 53,900 Twitter followers that Ethereum has built a strong foundation under unfavorable market conditions and now has a solid chance at more price appreciation.
McGlone shares a chart showing the price of ETH maintaining a sideways foundation despite constraint in USD liquidity, which often correlates with risk assets.
“What Stops Ethereum From Outshining Bitcoin, Stocks? Ethereum’s successful transition to proof-of-stake amid the global energy crisis and its dominant position at the epicenter of the digitalization of finance and money may be a foundation for enduring price appreciation.”
McGlone also says that Ethereum may also have an advantage over Bitcoin that could see it outperform in the future. According to the analyst, the number two digital asset by market cap may have a better tokenomics structure that could help keep ETH more scarce that BTC.
“Ethereum Performance Edge vs. Bitcoin – Supply Is Falling Faster: Ethereum may have surpassed Bitcoin in terms of definable diminishing supply amid widespread adoption and increasing demand.”
Looking at the broader macro climate, McGlone is currently forecasting a 1929-style recession triggered by sudden monetary tightening by central banks.
“What stops the global tilt toward recession? The Fed intensifying tightening and the most central banks in history playing catch up despite deflating markets amidst diminishing global GDP in the aftermath of the biggest liquid pump in history in 2020-21, looking 1929-ish.”
At time of writing, Ethereum is changing hands at $1,549.
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