If staring at your crypto portfolio makes you feel like you have gastro on a flight from London to Sydney (true story), then listen to what Bloomberg's Mike McGlone and Pantera Capital's Dan Morehead had to say recently.
Because they might make you think twice about ditching it and going all in on the US dollar instead.
Let's start with Bloomberg Intelligence's respected senior commodity strategist, Mike McGlone, who spoke to Kitco News.
McGlone told the paper that while he sees the current crypto winter as potentially longer than previous market downturns, he expects the industry to bounce back stronger than ever thanks to the "Fed sledgehammer."
And for the analyst, this means that Bitcoin will reach $100,000 and Ethereum $6,000 by 2025.
"For me, it's only a matter of time before Bitcoin gets to $100,000," McGlone said.
“The key fact is that adoption and demand is growing if you don't expect it to change. Will continue to appreciate it; it's just a matter of time now."
In the meantime, patience is at play, but McGlone expects the Fed's rate hikes to end by the end of the year, which he says should spur gains in bitcoin and gold.
"Most central banks in history are raising rates with the world tipped toward recession," noted a Bloomberg analyst.
"Lower commodity and risk asset prices may be the only way out, with deflationary implications that should support the price of gold and its digital version, bitcoin."
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In addition, he expects Bitcoin and cryptocurrencies to outperform other commodities in the coming year.
"It's been a bad decade for commodities and an exceptionally good decade for bitcoin, and 2022 may prove to be a stronger medicine with higher prices than ever in favor of cryptocurrencies," he said.
"With Federal Reserve tightening coming to an end, risk versus reward may tilt toward resuming Bitcoin's sustained upward trajectory, especially against most commodities."
McGlone also sounds confident that bitcoin will outperform and become a "high beta version of gold and US Treasuries" in the long term.
"The ratio of Bitcoin to gold is about 10x, which was first achieved in 2017. In a world that is rapidly digitizing, the benchmark cryptocurrency is the main competitor of the old-guard gold," he added.
Billions will use blockchain, says CEO of Pantera Capital
Meanwhile, Dan Morehead, head of institutional asset manager Pantera Capital, thinks a bull run may be on the way and that blockchain technology will be used by billions of people in the coming years.
In a recent interview with CNBC, Morehead said he believes cryptocurrencies will gain significant traction in the near future due to the benefits of their currency network.
"It's important to remember that cryptocurrencies are such a disruptive thing that will change so many aspects of our lives over the next decade," Morehead said.
“In a few years, I see a world where risk assets may still struggle, but blockchain will return to all-time highs based on its own fundamentals.
"There are hundreds of millions of people using the blockchain today, but I think in four to five years it will be literally billions of people, and if you have a billion people, they want to buy a fixed number of coins, so the prices will probably go up."
DeFi, NFT and the metaverse "should be in your portfolio"
And in his keynote speech at the Token2049 conference in Singapore, which kicked off today, Morehead also highlighted the potential growth and value of decentralized finance (DeFi), as well as the functionality of Web3, NFT and the application metaverse.
As reported by Cointelegraph, Morehead believes these are the areas of cryptocurrency that hold the most investment promise, reportedly saying:
“We're almost at the point where half of the entire market is made up of things that aren't the two main blockchains, and I'm still very bullish on Bitcoin and Ethereum,” he adds, “But I just think these projects are going to work. even better and should be in someone's portfolio.”
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