With a focus on the next market movement, senior commodity strategist at Bloomberg Intelligence Mike McGlone opines that pre-pandemic deflationary circumstances will play out in the second half of the year. Through a tweet on June 21, McGlone noted that Bitcoin (BTC), gold and U.S. treasury bonds would emerge as the biggest beneficiary of this deflationary environment. According to the strategist, the pre-pandemic deflationary environment will be inspired by correcting risk assets that might be impacting the current inflation rates.
Bitcoin’s potential to dominate 2022
Interestingly, McGlone’s latest projection of the broader market in 2022 comes after noting that Bitcoin will likely dominate the rest of the year. He stated that the current state of the stock market might not recover soon, leaving room for risk assets to stand out. After Bitcoin plunged by over 60% from its all-time high to trade around $20,000, the strategist had ruled out the possibility of any further price correction, noting that the level should be treated as the new bottom. McGlone maintained that with Bitcoin maturing alongside diminishing supply, investors should expect the asset to rebound towards $100,000 by 2025. It’s also worth mentioning that Bitcoin has shown signs of recovery, attempting to sustain its price above $20,000, trading at $21,300 by press time with gains of about 5% in the last 24 hours. The minor gains by Bitcoin inspired the crypto market to start the week on a positive note attracting a capital inflow of at least $70 billion within 24 hours. Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
