Bloomberg Analyst Forecasts Bitcoin's Potential Underperformance and Gold's Resilience in 2024
Summary:
Bloomberg's Senior Commodity Strategist, Mike McGlone, anticipates Bitcoin to underperform against the stock market in 2024, due to macroeconomic factors and potential changes in Federal Reserve policies. He predicts a potential recession in 2024 that could negatively impact Bitcoin but favours gold and long-term treasury bonds as more resilient assets.
Senior Commodity Strategist at Bloomberg, Mike McGlone, has suggested that in 2024 Bitcoin (BTC) might underperform against the stock market when adjusted for risk. On the other hand, gold could emerge as the more profitable asset. Despite the positive chatter surrounding Bitcoin's recent exchange-traded fund (ETF) acceptance and the upcoming halving, macroeconomic influences could obstruct the leading cryptocurrency from surpassing its all-time highest values in 2024. McGlone anticipates that expectations for the Federal Reserve to reduce interest rates, typically a beneficial move for 'risk-on' assets such as Bitcoin, are largely misguided. "Due to inflation caused by over-easing in the past, the Fed wouldn’t have the same flexibility to soften monetary policies as before," he elaborated in an exclusive interview with Cointelegraph. McGlone envisions a recession hitting the U.S economy in 2024, which would potentially send the stock market tumbling. As Bitcoin is often seen as a front-runner among risk assets, it could take a hit in such a scenario. “Bitcoin tends to plummet more when the stock market falls significantly," claimed McGlone. He stated that gold and long-term Treasury bonds are likely to be the winners in a sluggish economy. For a comprehensive understanding of McGlone's 2024 predictions, check out the full interview on our channel. Don't forget to hit the subscribe button!
Published At
1/24/2024 8:00:00 PM
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