Bloomberg analyst warns of crypto crash on deflation

Mike McGlone, the alert senior strategist at Bloomberg Intelligence, closely monitors the crypto market and is sounding the alarm about potential downside risks in a declining economic climate. McGlone emphasizes that cryptocurrencies, which have outperformed other assets so far, could see a significant pullback once deflation hits.

Deflationary Risks and Challenges for Bitcoin and Ethereum

McGlone sees the plummeting commodities and bank deposits as a sign that deflationary risks are on the rise and that a deflationary bust may be imminent. According to him, crypto assets face the same downside risks as banking stocks in the recent past. He saysBorn out of the 2008 financial crisis, Bitcoin is facing its first U.S. recession, and if the stock market follows the banks, crypto will also decline with the flow.

McGlone also sees challenges for Bitcoin and Ethereum at the crucial USD 30,000 and USD 2,000 levels respectively. He views these cryptocurrencies as revolutionary technologies and assets, but says they may run into a wall of resistance. In the long run, he has a bullish bias for the two leading cryptocurrencies, but warns do say that overwhelming strength from the stock market going down, coupled with the Fed tightening into a recession, has the potential to turn the tide for all risky assets, including Bitcoin and Ethereum.

Who is Mike McGlone

As a Senior Commodity Analyst at Bloomberg Intelligence, Mike McGlone has a keen eye for analyzing and forecasting trends in the commodity markets. With more than 30 years of industry experience, he is a sought-after commentator on financial news networks and in various financial publications.

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But it is mainly his vision of Bitcoin that attracts attention. McGlone is one of the cryptocurrency’s most outspoken proponents, and has long emphasized that Bitcoin’s scarcity, amplified by its halving every four years, makes it an excellent store of value. In addition, he predicts that Bitcoin’s volatility will decrease, making it an attractive investment for investors.

McGlone’s optimism about Bitcoin is undeniable, and he believes the cryptocurrency’s value will continue to rise in the long run, potentially reaching $100,000 or even $500,000 per coin. He cites growing institutional adoption, growing user base, and limited supply as contributing factors to Bitcoin’s future value.

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