Bloomberg Intelligence senior macro strategist Mike McGlone says the stage is being set for a strong Bitcoin (BTC) performance next year.
In a new interview with Scott Melker, McGlone says that Bitcoin’s halving event, plus a series of other fundamental developments, are set to boost the flagship cryptocurrency in 2024.
Bitcoin undergoes a halving every four years when the newly issued supply of BTC is reduced by half, and the event has historically coincided with Bitcoin bull markets.
“The key thing is what stops that trajectory? In the big picture trying to play for these $10,000 moves, I guess well that’s a big amount of Bitcoin now, can make you lose your hair. The bottom line is astute investors, institutions on the planet all realize every day that goes by is they need part of this asset. I think by the time we get to ’24, that halving, we’re gonna be talking about a pretty severe recession, all politics leaning Republican, at least presidential, and it’s just going to be a great setup next year. I’m really looking forward to it.”
In the near term, McGlone says he’s not totally bullish on Bitcoin yet, and is waiting to see the performance of the S&P 500 (SPX). He says the SPX is a reliable measure of the volatility of other risk assets like Bitcoin.
“The current trajectory is Bitcoin is showing it’s becoming more of a global digital reserve asset and potentially a store value as the stock market volatility is high. The key thing is let’s say S&P is making a new low and heads toward $3,000. Let’s see how Bitcoin reacts. It’d be wonderful if it doesn’t go below $20,000. But we got to see. I don’t know. Long term, as we get through this period, there’ll be more significant signals that Bitcoin is going to go up to $100,000…
I’m too bearish [on the] stock market. The number one measure of beta of risk assets on the planet is the S&P 500. I’m still too bearish that, to be bullish Bitcoin. I just got to see how that pans out.”
Bitcoin is trading for $27,191 at time of writing.
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