Bloomberg Intelligence Senior Macro Strategist Mike McGlone recently joined David Lin on his YouTube show to discuss his bullish outlook on Bitcoin (BTC), especially amidst looming economic recession concerns. McGlone expressed confidence in the flagship cryptocurrency, believing it will outperform most risk assets as it continues to mature.
According to McGlone, the ongoing banking crisis is defining Bitcoin’s value. He expects the digital asset to continue outperforming most other cryptocurrencies, particularly those listed on the Bloomberg Galaxy Crypto Index. This index, which excludes stablecoins, exchange tokens, and privacy coins, consists of the largest and most liquid digital assets by market capitalization and undergoes monthly reconstruction and rebalancing.
However, McGlone did warn that Bitcoin’s price could temporarily dip due to the tide going out in all risk assets. Despite this short-term concern, he remains optimistic about its long-term potential. Although Bitcoin didn’t reach his $100,000 target during the 2021 rally, peaking around $70,000, McGlone is convinced the cryptocurrency will eventually return to its upward trajectory.
In the interview, McGlone emphasized Bitcoin’s unique attributes, including its diminishing supply and low adoption rate in its early stages. He sees the potential for Bitcoin to become a global digital collateral, despite facing possible regulatory challenges and bumps along the way. As of late, Bitcoin has demonstrated remarkable resilience, solidifying its status as an indestructible asset. McGlone also noted the recent and ongoing demonstration of Bitcoin’s resilience, referring to it as ‘indestructible.'”
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McGlone emphasized that savvy investors and institutions increasingly recognize the need to include Bitcoin in their portfolios, suggesting that by 2024, the focus will shift toward a severe recession and political leanings, making it an excellent setup for Bitcoin.
During the interview, McGlone explained that astute investors and institutions worldwide are realizing the importance of incorporating Bitcoin into their assets every passing day. He also expressed enthusiasm for the future.
As Bitcoin continues establishing itself as a global digital reserve asset, McGlone acknowledged its potential to become a store of value amidst high stock market volatility. He noted that the reaction of Bitcoin’s price in relation to the S&P 500’s movement would be a key indicator of its future performance.
He emphasized that if the S&P 500 reached new lows and headed toward 3,000, it would be interesting to observe Bitcoin’s reaction. Ideally, Bitcoin’s price would not dip below $20,000 during such market conditions.
McGlone also discussed his long-term outlook on Bitcoin’s price, suggesting that more significant signals could indicate a potential rise to $100,000. However, he admitted to being bearish on the stock market, particularly the S&P 500, which he considers the primary measure of risk assets worldwide. He stated that he needed to see how the stock market situation unfolds before adopting a more bullish stance on Bitcoin.