Mike McGlone, a macro strategist at Bloomberg, predicts that Bitcoin (BTC) will outperform most other risk assets over time. He is particularly bullish on the flagship cryptocurrency because he believes that it is defining itself as a “digital collateral” and its definable diminishing supply and low early days of adoption. Despite its recent struggles, McGlone believes that Bitcoin will return to its uptrend.

However, the analyst warns that the crypto asset is still one of the riskiest investments, and could face short-term pushes lower as a result of liquidity constraints. He warned against a trend of falling risk assets, which could drag Bitcoin down with them, and urges investors to proceed with caution. McGlone also discussed the Bloomberg Galaxy Crypto Index, a monthly rebalanced and reconstructed index tracking the top digital assets.

McGlone acknowledges that Bitcoin has yet to reach his 2021 target of $100,000, and the current high is only around $70,000. He believes, however, that with current conditions and major developments in its adoption, the flagship crypto asset will resume the bullish momentum. He notes that Bitcoin is increasingly seen as an indestructible investment, which is shielding it from regulatory and other hurdles.

Overall, McGlone is bullish on the potential of Bitcoin to perform as a “digital collateral,” with higher returns for investors and a bright future for the asset as it continues to draw attention and acceptance from mainstream investors. He recommends taking caution when investing in Bitcoin, and to remain aware of liquidity issues that could cause the asset to take a near-term hit.



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