U.Today - Mike McGlone, the chief commodity strategist at Bloomberg Intelligence, has published a tweet about gold, Bitcoin and other commodities and their behavior under the current U.S. austerity regarding its external economic policy.
While stating that gold is rising, surpassing everything else, including Bitcoin, the expert believes that the world’s largest cryptocurrency may experience a major crash this year since it is moving in line with the Nasdaq 100 index.
"Great Reset delayed?" McGlone wonders
McGlone stated that the “Great Reset” might be delayed. The idea of the “Great Reset” was established at the World Economic Forum in Davos in 2020 and was associated with global economic downturns, various policy shifts and debt crises.Now, Bloomberg’s expert said, “gold is shining” versus crude oil, the stock market (the S&P 500 index) and Bitcoin. This is likely to have deflationary implications if the situation remains this way.
The current situation with the U.S. imposing austerity and high tariffs on its closest neighbours – Mexico, Canada – and China may provide catalysts for “some overdue reversion in risk assets,” McGlone stated.
Gold surging, Bitcoin may copy Nasdaq’s 2000 crash: McGlone
McGlone likened the current success of Bitcoin to that faced by the Nasdaq index in the year 2000. Back then, the composite tech index surged to a peak of 5,000 points and then crashed. That happened during the dot-com bubble when tech stocks were greatly overvalued. The collapse reached 80%, and only two years later, the Nasdaq began a slow recovery.Thus, McGlone might be hinting at a bubble forming now and that it may burst, pushing Bitcoin down this year, when it potentially reaches $100,000 per coin once again. A collapse of 80% from $100,000 would constitute $20,000. However, this is a price that nobody in the crypto market believes Bitcoin would ever fall to again.
Today, digital gold (Bitcoin) has printed a rise of 4.75% and is currently changing hands at $89,475, still unable to hold above the $90,000 level.