By
Steve Muchoki
May 6th, 2024
McGlone is also optimistic about the USD-backed stablecoins and believes that the assets will grow massively in 2022.
Bloomberg analyst Mike McGlone believes Bitcoin is all set to touch the $100K figure this year. According to McGlone, the most popular cryptocurrency in the world is steadily changing directions from a risk-on to a risk-off asset. With the regulatory side of the industry pushing for a hike in interest rates to counter the challenges of inflation, cryptocurrencies, which feature as risk-on assets, are more likely to endure downfalls. This is because the increasing prices will eventually make people invest in fixed-income assets like bonds.
While this can place the crypto industry in a very wobbly position, for the time being, McGlone believes that the trend will not have a long time effect on the growth of Bitcoin. According to him, the currency is at a very remarkable stage with its transition from a risk-on to the risk-off global digital store of value, substituting gold while becoming global collateral. He believes that Bitcoin will finally change paths and turn out to be a more influential asset globally than ever before.
Talking about the crypto market in general, Mcglone asserted that the present bearish opinion of the public is also a favorable signal for market unification.
Having said that, the Senior Commodity Strategist at Bloomberg also flaunts a bullish opinion on Ethereum token (ETH). Keeping in mind its impressive role in furnishing the world with the essential framework for Decentralized Finance and Non-Fungible tokens (NFT), Ethereum is also set to make huge ripples in the market in the upcoming months.
McGlone is optimistic about the USD-backed stablecoins too and believes that the assets will grow massively in 2022.
While McGlone is all praise for the above-mentioned assets, he is doubtful about the altcoins, owing to a large number of tokens present in the market. According to the expert, straightforward rules of economics do not apply to markets with an unlimited supply and ease of entry like the crypto market.
With all the conjectures around Bitcoin this year, it is, however, not the first time analysts have anticipated the rise of Bitcoin to $100,000. In December last year, McGlone had predicted the mass adoption of cryptocurrencies with a pertinent regulatory framework that will lead to a bull phase in the market by 2022.