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Written by Giovanni Pignistaff writerEdited by Alex Cohenformer editor

Bitcoin likely to transition to a risk-off asset in H2 2022, says Bloomberg analyst

InterviewPublishedAug 8, 2022

As the global economy moves into a recession in the second half of 2002, Bitcoin will likely rally alongside gold and treasury bonds, according to Mike McGlone, a senior commodity strategist at Bloomberg.

bitcoin-likely-to-transition-to-a-risk-off-asset-in-h2-2022-says-bloomberg-analyst

Bitcoin is likely to transition from a risk-on to a risk-off asset in the second half of 2022, as the macroeconomic environment is rapidly shifting towards a recession, said Mike McGlone, senior commodity strategist at Bloomberg, in a recent interview with Cointelegraph. McGlone predicted:

“ I see it transitioning to be more of a risk-off asset like bonds and gold, then less of a risk-on asset like the stock market.”

According to the analyst, the crypto market has flushed out most of the speculative excesses that marked 2021 and it is now ripe for a fresh rally. McGlone also pointed out that the Fed’s aggressive hiking of interest rates will lead the global economy to a deflationary recession, which will ultimately favor Bitcoin:

“I fully expect we’re going to have a pretty severe recession globally, which probably will make Bitcoin shine [...] along with gold and U.S. Treasury long bonds.”

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This interview has been edited and condensed for clarity.

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