tl;dr
Bloomberg commodity strategist Mike McGlone highlights Bitcoin's year-to-date outperformance against the S&P 500, noting Bitcoin's recovery while the S&P 500 declined nearly 10%. He warns that both stocks and cryptocurrencies could face significant downturns if a recession occurs, with the US stock ...
Bloomberg strategist Mike McGlone highlights Bitcoin's impressive year-to-date outperformance over the S&P 500 amid rising recession concerns. While the S&P 500 declined nearly 10%, Bitcoin showed resilience, recovering strongly during this period.
McGlone warns that both cryptocurrency and stock markets could face severe deflation similar to historic crashes such as those in 1929, 1989, and 2000. He attributes this to factors like unlimited supply, heightened volatility, and the speculative nature of digital assets, which may lead to significant downturns if a recession hits, potentially causing the US stock market to drop about 30%.
Despite these risks, McGlone suggests that Bitcoin might outperform gold should stock markets continue their downward trend. Over the past year, both Bitcoin and gold have gained roughly 42%, while the S&P 500 managed an almost 10% increase. Currently, Bitcoin trades around $93,228, recording a 1% daily rise.
McGlone’s analysis frames Bitcoin as a potentially strong contender against traditional safe havens like gold, especially if economic conditions worsen. His insights underscore the complex dynamics between digital assets and conventional markets in uncertain times, inviting investors to closely monitor how these trends evolve.