Bitcoin, the top cryptocurrency, is still on track to reach $100,000, according to Mike McGlone, the senior commodity strategist at Bloomberg.
McGlone believes that oil prices will continue on a downward trajectory in the second half of 2022.
Sinking crude is likely to signal global deflationary trends, which means that the U.S. Federal Reserve will likely stop hiking rates. According to a recent survey conducted by the Federal Reserve Bank of New York, inflation expectations have plunged in the U.S. across all time horizons.
At the same time, the commodity strategist is convinced that Bitcoin will start acting as a high-beta version of gold and Treasury bonds.
As reported by U.Today, McGlone repeatedly stated that Bitcoin could reach $100,000 by the end of 2021. His forecast, however, was terribly wrong: the largest cryptocurrency collapsed to as low as $17,600 this June. Yet, the analyst continues to stand by his uber-bullish prediction.
The extremely strong jobs report, which shocked markets last week, has likely emboldened the U.S. Federal Reserve to cut rates in a more aggressive fashion.
As reported by U.Today, McGlone named an emboldened Fed as the biggest headwind for the leading cryptocurrency.
Earlier today, the Bitcoin price surged above the $24,000 level, rallying together with stocks.
The top cryptocurrency is still down an eye-popping 65.39% from its record high, underperforming Ethereum. Bitcoin would need to surge 316% in order to reclaim the $100,000 level.