Bloomberg’s macro strategist Mike McGlone is predicting crypto traders are going to start funneling their wealth into a non-digital asset due to a looming recession.
In a new interview with Scott Melker, McGlone says that the bear markets are likely not finished and crypto traders will probably start moving their investments into gold, which tends to increase in value during recessions.
“Bear markets don’t end like this. I just don’t see that. They end not [after] months of pessimism, but years of pessimism. And that to me is what we’re heading for, particularly something like this that has hundred years of foundations behind it.”
McGlone predicts that crypto investors will turn to the precious metal gold as a safer store of value. He previously said that gold will likely perform better than Bitcoin (BTC) during the possible coming recession.
“The key thing I want to go over a little bit is the gold/Bitcoin ratio. Here’s my prediction of the future…
People from cryptos are going to FOMO (fear of missing out) into gold – for a while. It’s overdue for that…
They’re going to realize, Okay, I’ve made so much money. I can get 5% or so in a T-bill, 4%, lock it in, bear market kicking in, there’s a lot of excesses in here, and this thing that we call ‘Boomer rocks’ is going to be self-fulfilling.”
McGlone predicts a recession is coming and crypto markets will suffer as investors are also likely to turn bullish on Treasury bonds, which are experiencing increasing yields.
“This is the first recession for most crypto traders…
The Fed wants you to lose money. This is the case where we are right now. The Fed wants the stock market to go down. That’s my interpretation. We’re going to see FOMO into gold. We’re going to see a bear market to resume in cryptos, this was just the bounce. And there’s only one other bull market I see coming and that’s in Treasury bond yields.”
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