McGlone shares a graphic with his Twitter following comparing ETH/BTC, the NASDAQ and the Federal Reserve money supply.
According to the analyst, the ETH/BTC pair may be acting as a leading indicator for risk assets, suggesting an incoming correction in the stock market and perhaps crypto as well.
McGlone says that markets may be adjusting to a developing period of disinflation brought on by the harsh reversal in monetary policy from the Federal Reserve.
“Don’t Blame $2,000 Ethereum, $30,000 Bitcoin. If risk assets peak, markets may be in early the days of adjusting to disinflation, which is normal in recessions, but the Federal Reserve may never loosen with the ease it has in the past. Enduring deflation could be reciprocal”
In a recent interview with Yahoo Finance, the Bloomberg analyst says that gold will likely be one of the best performing assets in the deflationary recession that he’s forecasting.
“I think it is pulling back a little today, but I think it’s inevitable that gold gets above this $2,000 an ounce level and never looks back. And the key catalyst is the stock market potentially rolling over…
So I see this as just the catalyst for gold to take off. It’s one of the few commodities I’m really bullish on because everything’s starting to tilt downward towards deflationary trends.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Liu zishan