According to Bloomberg’s macro strategist, Mike McGlone, cryptocurrency traders may begin investing in non-digital assets as a result of an impending recession. McGlone believes that the bear markets are not yet over, and as a result, traders will likely shift their focus to gold, a traditional safe-haven asset that tends to appreciate in value during economic downturns.
McGlone shared his views during an interview with Scott Melker and said, “Bear markets don’t end like this. I just don’t see that. They end not [after] months of pessimism, but years of pessimism. And that to me is what we’re heading for, particularly something like this that has hundred years of foundations behind it.”
He has forecasted that cryptocurrency investors will seek refuge in gold as a more secure means of storing value. In an earlier statement, McGlone had indicated that gold would potentially outperform Bitcoin in the event of an upcoming economic recession.
The analyst said that cryptocurrency traders will soon experience a fear of missing out (FOMO) and start investing in gold as a safe-haven asset. However, as the bear market sets in, they will realize that they can lock in a more stable return of 4-5% with T-bills, leading to a shift away from gold. McGlone believes that gold, also known as “Boomer rocks,” will become a self-fulfilling asset as more investors turn to it as a store of value during economic uncertainty.
“This is the first recession for most crypto traders. The Fed wants you to lose money. This is the case where we are right now. The Fed wants the stock market to go down. That’s my interpretation. We’re going to see FOMO into gold. We’re going to see a bear market to resume in cryptos, this was just the bounce,” he added.