Bitcoin’s Potential as a Safe Haven Asset: Bloomberg Analyst Shares his Perspective
Mike McGlone, a senior commodities analyst at Bloomberg, believes that Bitcoin has a promising future in the long run.
In a recent interview with Stansberry Research, McGlone expressed his bullish sentiment towards Bitcoin but cautioned that risk assets, including the flagship cryptocurrency, could face significant challenges going forward.
The analyst cited Bitcoin’s definable diminishing supply and early adoption as major reasons for his optimism, and he believes that it is essential to be bullish on Bitcoin over time.
However, he also noted that Bitcoin trades 24/7 and serves as a leading indicator, implying that it may have recently rolled over from $30,000.
McGlone acknowledged that the recent price gains Bitcoin has experienced are likely attributable to a bear market rally. He believes that if other correlated assets start declining in value due to a recession, Bitcoin will follow suit. McGlone predicts that Bitcoin will likely be the first to lead the charge if markets decline, as it is still a risk asset.
As of the time of writing this passage, the current market value for Bitcoin stands at $27,330.
Despite its initial trading value of approximately $16,500 at the beginning of the year, the digital currency experienced an almost 90% increase in value, peaking at $31,000 earlier in April 2023.
McGlone, however, holds the belief that in the future, Bitcoin will function as a safe haven investment, much like gold and long-term bonds. However, it’s important to note that it will continue to carry a level of risk.