Mike McGlone is Bloomberg Intelligence’s senior commodity strategist. He believes that the top crypto assets, such as bitcoin and Ethereum, may have reached bottoms for traditional risk investment. McGlone’s perspective on the crypto market was published Nov. 3, 2022. He noted that while ethereum may not surpass bitcoin in terms of market performance, it will likely remain within the $1K-$2K range.
“Migration into mainstream is our takeaway. Once the dust settles from some risk asset reversion amid inflation pressures and volatility, Ethereum is more likely resume doing what it’s been doing – outperforming,” the Bloomberg analyst wrote in his report titled “Did Ethereum at 1,000 Mark a Bottom?” Cryptos could regain their edge.
McGlone has been bullish for some time on the top crypto assets Bitcoin and Ethereum. During the first week in October, the senior commodity strategist stated that the two leading crypto assets would outperform all major assets. He shared his October outlook and noted that BTC was ‘entering an inexorable stage of its migration into mainstream.
According to the analyst, crypto assets could be at the bottom because the top crypto assets appear to have finished the bulk of their drawdown. The Federal Reserve is focusing on stocks as a way to curb inflation. McGlone noted that bitcoin and ethereum saw significantly less volatility than traditional assets. McGlone, a senior commodity strategist, wrote:
Volatility in bitcoin and ethereum has fallen to low levels vs. other assets. This may increase risks for those who do not have partial crypto exposure.
“Fed Sledgehammer May be Building a Foundation For Precious Metal”
McGlone also stated that gold would likely perform well if the U.S. Federal Reserve changes its restrictive monetary policy over the past five months. McGlone noted in his commodities outlook that “The Fed sledgehammer might be building a foundation to the precious metal.”
McGlone stated that the Fed’s most aggressive tightening cycle in over 40 years will not stop until something breaks. Sharp declines in bond prices, most currencies and the dollar could indicate an approaching endgame.