Bloomberg’s senior commodity strategist Mike McGlone says a new deflationary period may be arriving to the financial landscape, from which Bitcoin (BTC) and gold could benefit.
The analyst tells his 47,700 Twitter followers that plummeting risk-on assets may evolve into a deflationary phase that boosts the flagship cryptocurrency, the yellow metal and US bonds.
“Too Hot Stocks vs. Maturing Bitcoin? Plunging risk assets in 1H [first half] are taking away inflation at a breakneck pace, which may translate into pre-pandemic deflationary forces resurfacing in 2H [second half]. Primary beneficiaries of this scenario may be gold, Bitcoin and US Treasury long-bonds.”
Source: Mike McGlone/Twitter
As Bitcoin continued dipping over the weekend, McGlone predicted that this week would see even more declines in risk assets. He says