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Bitcoin Undergoing Paradigm Shift Amid Banking Crisis

Bitcoin Undergoing Paradigm Shift Amid Banking Crisis

Mike McGlone, a senior macro strategist at Bloomberg Intelligence, recently discussed how the recent bank failures in the United States are changing how investors view Bitcoin (BTC).

He believes that due to these bank failures, more investors will likely start viewing Bitcoin as a valuable alternative asset outside of the traditional monetary system.

During a live stream with Scott Melker, McGlone expressed his belief that we are seeing a fundamental paradigm shift in the market as a result of the crisis. He predicts responsive investors will start buying the asset during dips and reducing their holdings during rallies. This is a marked difference from the past, where investors would typically sell off their BTC holdings during market downturns.

McGlone argues that inflation concerns and a probable recession will limit liquidity, causing Bitcoin, bonds, and gold to become more sought-after assets.

He suggests that we will have a different re-liquefication than in the past, where governments would inject massive amounts of liquidity into the market to boost economic growth. Instead, he believes that people will be more cautious and invest in assets with a track record of holding their value during times of economic uncertainty.

In particular, McGlone believes that Bitcoin, bonds, and gold will be some of the assets people will be looking to buy during dips. These assets offer a level of stability that other riskier assets like equities, do not. He argues that we are currently in a different environment for US equities and that investors must be more cautious with their investments.

However, McGlone also believes we must get through this recession before considering risk assets like equities. According to the yield curve, the probability of a recession was at an all-time high just two weeks ago. This means that investors need to be cautious and focus on assets likely to hold their value during economic uncertainty.

READ MORE: Bitcoin Surges Above $28,000 – Fears Around Banking Escalates

In summary, Mike McGlone believes that the recent bank failures in the United States are changing how investors view Bitcoin. He predicts that more investors will start viewing BTC bonds and gold as valuable alternative assets outside of the traditional monetary system.

These assets offer stability and are likely to hold their value during economic uncertainty, making them a good investment option during a recession. However, investors should be cautious and focus on these assets before considering riskier assets like equities.

Andrey Kunev

Reporter at CoinsPress

Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.

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