Risky asset markets, including crypto money markets, have witnessed serious outflows with the implementation of tightening monetary policies around the world due to inflation pressure.

Estimates about cryptocurrencies have also increased, as the price of Bitcoin declined to the $ 17,000 band this month and returned to November 2020 prices. Crypto critics predict that Bitcoin could drop from $12,000 to as low as $5,000, while optimists argue that past $5,000 lows currently represent $20,000. Binance CEO, on the other hand, refers to the increase in the rhetoric of “Bitcoin is dead” and interprets this as an important bottom signal in cryptocurrencies.

Bloomberg Intelligence's experienced commodity analyst Mike McGlone, while expressing his views on the next market movement, thinks that the pre-pandemic deflationary environment will emerge in the second half of the year. Conveying his views on Twitter, McGlone claimed that Bitcoin (BTC), gold and US treasury bills will be the most premium investment assets in this deflationary environment. According to McGlone, the pre-pandemic deflationary environment will re-emerge after the correction of risky assets.

McGlone Bitcoin btc

While McGlone thought that risky assets, which fell sharply in the first half of 2022, would contribute to the decrease in inflation, he suggested that there may be a rapid transition towards a deflationary environment in the remainder of 2022. McGlone expects demand for Bitcoin, gold and long-term US bonds to increase significantly in this case.

Mike McGlone believes that Bitcoin will come to the fore again in the coming months as he presents his views on the global financial markets. The analyst, who conveyed a pessimistic view about the stock markets, stated that he believed that other risky assets could come to the fore.

McGlone, who also makes a long-term price prediction about Bitcoin, said that he expects Bitcoin to rise to the level of 100 thousand dollars by 2025, while citing the decreasing supply of Bitcoin and its maturation with each passing year. Commenting on the current situation, the analyst says that BTC has reached the bottom price after losing 60 percent of its value from its peak price and retreating to the $20,000 band, and does not expect a further decrease.