Bitcoin is likely to transition from a risk-on to a risk-off asset in the second half of 2022, because the macroeconomic surroundings is quickly shifting in direction of a recession, stated Mike McGlone, senior commodity strategist at Bloomberg, in a latest interview with Cointelegraph. McGlone predicted:
“ I see it transitioning to be more of a risk-off asset like bonds and gold, then less of a risk-on asset like the stock market.”
According to the analyst, the crypto market has flushed out a lot of the speculative excesses that marked 2021 and it’s now ripe for a contemporary rally. McGlone additionally identified that the Fed’s aggressive mountain climbing of rates of interest will lead the worldwide economic system to a deflationary recession, which is able to finally favor Bitcoin:
“I totally count on we’re going to have a fairly extreme recession globally, which most likely will make Bitcoin shine […] together with gold and U.S. Treasury lengthy bonds.”
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