Can Bitcoin become “the best asset on Earth”? The expert bet above

The best risky asset of the last decade, Bitcoin, is in transition. Mike McGlone, a senior commodity strategist for Bloomberg Intelligence, said in a recent interview with Kitco News’ “On The Spot.”

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This process is painful, as cryptocurrency investors can confirm, but it could take reference cryptography to new heights. Over the past 6 months, the price of Bitcoin has fallen from an all-time high of $ 69,000 to its current level of about $ 30,000.

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In the short term, the pain was most pronounced with Bitcoin registering 9 consecutive weeks in red. McGlone believes that cryptocurrency and other risky assets are reacting to the current macro outlook.

The crypto market has seen some of the best performance in global markets. The rise in the nascent asset class generally corresponds to 4-year cycles with parabolic bullish cycles followed by multi-year bearish markets.

Many in the industry believe that cryptocurrencies have entered their bearish phase or “Crypto Winter”. Two factors have been added to the losses: the start of economic tightening measures by the US Federal Reserve and the collapse of the Earth ecosystem.

In this regard, McGlone argued that Bitcoin and other cryptocurrencies have to face the biggest losses because they have recorded the biggest gains. This process is called “average reversal” when an asset is trending in one direction and then reversing to an “average” price or level.

On the latter, the senior commodity strategist said it was “difficult” to calculate a low price exactly. Bitcoin has moved at the same time as the Nasdaq 100 and recently both reached their 100-week moving average when the price of BTC fell to $ 30,000.

McGlone says trends appear to be affecting more losses, but Bitcoin should “come out on top.” This potential rise will be fueled by the “institutional supply” as global institutions continue to adopt BTC and due to the “inelastic supply” of cryptocurrency.

That will bring Bitcoin to $ 100,000

Despite its recent growth, McGlone claims that a small portion of investment firms have included BTC in their portfolio. That could change in the coming years as Bitcoin becomes a “global guarantee” and a new rise to $ 100,000 begins in 2024.

On BTC’s future price prospects and potential fund, McGlone added:

I think $ 30,000 is a very good support pivot for Bitcoin. It basically needs equity to keep falling to make it fall. But what I think is that (BTC) is giving good support and I hope it can reach $ 20,000, but I doubt it will, in the next two years it will come back and reach $ 100,000.

The current downward trend could be a good thing for some of the strongest projects in the crypto industry. This will help eliminate speculative assets and leave these projects with a solid foundation.

These projects could continue to gain market share in traditional markets. As the expert said, the crypto market accounted for only 0.5% of global market capitalization. It is now around 1%.

In the coming years, as the economy becomes deflationary and stocks tend to decline, McGlone believes that Bitcoin and gold will be two of the best assets to maintain. However, the precious metal could lose market share to the number one cryptocurrency.

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At the time of writing, the price of BTC is trading at $ 29,700 with sideways movement in the last 24 hours.

BTC moves sideways on the 4-hour chart. Source: BTCUSD Tradingview

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