Bloomberg's major expert on commodities, Mike McGlone, has shared that there are early indicators now of which assets will be top beneficiaries in the longer term.
Bitcoin is seen to be among long-term winners
In his tweet, McGlone wrote that while the U.S. stock market is in decline, he sees Bitcoin, gold and U.S. Treasury bonds as the top longer-term beneficiaries.
Now, crude oil is also growing as the stock market is declining.
The arousal of one of the world's most powerful forces -- the U.S. #stockmarket in decline -- is providing some early indications of commodity divergent strength, and #crudeoil tops the list. We see #gold, #Bitcoin and U.S. T-bonds as top longer-term beneficiaries pic.twitter.com/ijpJHeRwD0
— Mike McGlone (@mikemcglone11) September 23, 2021
"$40,000 is the new $10,000 for Bitcoin"
Earlier this week, Bloomberg's chief commodity expert tweeted that he had not realized how many investors were moving their funds from gold into Bitcoin and Ethereum. He reminded his Twitter followers that this year, gold so far has gone down around 7% and Bitcoin has risen by almost 70%. Ether has gone up almost 400% year-to-date.
Aside from that, McGlone believes that the $40,000 level for Bitcoin is becoming the "new $10,000"—the area around which the flagship cryptocurrency is building a base and not going below it in correction periods.
Is $40,000 Bitcoin the New $10,000? Demand vs. Supply, Macro - The biggest risk to #Bitcoin is likely a risk-off swoon comparable to 1Q20. The crypto appears to be building a base around $40,000, akin to $10,000 last year. With supply decreasing, adoption increasing.... pic.twitter.com/n4hjeqpuNr
— Mike McGlone (@mikemcglone11) September 22, 2021
Despite the correction that seems to be over for Bitcoin and other cryptocurrencies, McGlone believes that the leading crypto may still rally to $100,000 by the end of the year.
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