Mike McGlone: ​​Bitcoin and Ethereum will win if the trend reverses

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A Bloomberg commodity expert believes that after the major economic crisis, assets such as cryptocurrencies, US bonds and gold will show unprecedented growth.

Mike McGlone, in an interview with Kitco News, said that he predicts a “great reversal” or deep correction in high-risk assets, including Bitcoin and corporate stocks:

“This may be reminiscent of the aftermath of 1929.Although I am more inclined to believe that this will be more like the consequences of the 2008 crisis, or perhaps the consequences of the 1987 crash. The current crisis has been brewing for a long time, there are many high-risk assets around, from apartments in Miami and Toronto to the stock market.”  

According to a Bloomberg analyst, the biggest inflation in 40 years is beginning.

"Once we get through this period,Bitcoin will become one of the best assets on the planet to store, like gold and US bonds. I think we're heading back to deflation, and the best way to get deflation is to raise prices sharply and then bring them down. This is what we do. We are at the beginning of a crisis,” McGlone said.

The analyst claims that in conditionsrevival of cryptocurrency markets Ethereum should be considered along with Bitcoin. According to McGlone, this happened due to the formation of massive cryptocurrency sectors based on Ethereum, such as stablecoins and non-fungible tokens (NFTs):

“Ethereum is revolutionizing the world of financialtechnologies and tokenization. After all, most NFTs are based on Ethereum. There are a lot of competitors out there now, but it’s Ethereum and Bitcoin that show what’s really going on in the crypto space.”

In May, the European Central Bankwarned that the high correlation between cryptocurrency and stock markets will no longer allow diversifying an investment portfolio with digital assets. According to the regulator, cryptocurrencies can no longer protect against shocks in the stock market.

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