Could Bitcoin Become “Best Asset on Earth”? Expert bets on it


The best risk-on asset of the past decade, Bitcoin, is in a transition process. Senior commodities strategist for Bloomberg Intelligence, Mike McGlone, said in a recent interview with Kitco News’ “On The Spot.”

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This process is painful, as crypto investors can attest, but it could take the benchmark crypto to new heights. Over the past 6 months, Bitcoin’s price has fallen from an all-time high of $69,000 to its current level of around $30,000.

In the short term, the pain was more pronounced as Bitcoin was in the red for 9 straight weeks. McGlone believes the cryptocurrency and other risky assets are reacting to the current macroeconomic outlook.

The crypto market has experienced some of the best performance in the global markets. The rally in the emerging asset class usually corresponds to 4-year cycles of parabolic bull runs followed by multi-year bear markets.

Many in the industry believe that cryptocurrencies have entered their bear phase or the “Crypto Winter”. The losses have been compounded by two factors: the onset of economic tightening measures by the US Federal Reserve and the collapse of the Terra ecosystem.

In that sense, McGlone argued that Bitcoin and other cryptocurrencies should suffer the biggest losses as they posted the biggest gains. This process is called “Mean Reversion” when an asset moves in one direction and then returns to an “average” price or bottom.

On the latter, the Senior Commodity Strategist said it is “difficult” to calculate an exact price floor. Bitcoin is moving along with the Nasdaq 100 and both recently hit their 100-week moving average as the price of BTC dropped to $30,000.

McGlone claims that the trends appear to be driving further losses, but Bitcoin should “get ahead”. This potential rally will be driven by “institutional bidding” as BTC continues to be adopted by global institutions, and due to the cryptocurrency’s “inelastic supply”.

What will bring Bitcoin to $100K?

Despite the recent growth, McGlone claims that a small portion of investment firms have included BTC as part of their portfolio. This could change in the coming years as Bitcoin becomes “global collateral” and starts another surge to $100,000 by 2024.

On BTC’s future price outlook and potential bottom, McGlone added:

I think $30,000 is a very good support pivot in Bitcoin. It basically needs equity to keep going down to push it lower. But what I feel it (BTC) is pumping in good support and I fully expect it to reach $20,000 but I doubt it will, within the next two years it will return to $100,000.

The current downward trend could be a good thing for some of the strongest projects in the crypto industry. This will help remove speculative assets and leave those projects with robust fundamentals.

These projects may be able to continue to gain market shares from traditional markets. As the expert said, the crypto market was only 0.5% of the market cap for global equities. Now that’s about 1%.

In the coming years, as the economy becomes deflationary and stock prices lower, McGlone believes Bitcoin and gold will be two of the best assets to hold. However, the precious metal could lose market share to the number one cryptocurrency.

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At the time of writing, the price of BTC is trading at $29,700 with sideways movements in the last 24 hours.

BTC is moving sideways on the 4-hour chart. Source: BTCUSD trading summary

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