If staring at your crypto portfolio is making you feel like you have gastro on a flight from London to Sydney (true story), then have a listen to what Bloomberg’s Mike McGlone and Pantera Capital’s Dan Morehead have been saying just lately.
Because they might well make you think twice about dumping it and going all in on the US dollar instead.
Let’s start with the respected Bloomberg Intelligence senior commodity strategist, Mike McGlone, who was speaking with Kitco News recently.
McGlone told the news outlet that although he sees the current crypto winter potentially lasting longer than previous market declines, thanks to the “Fed’s sledgehammer,” he expects the industry to bounce back stronger than ever.
And for the analyst, that means Bitcoin hitting US$100,000 and Ethereum tapping US$6,000 by 2025.
“Bitcoin to me, it’s a matter of time before it gets to $100,000,” said McGlone. “The key fact is that adoption and demand are increasing unless you expect that to reverse. It will continue to appreciate; it’s just a matter of time right now.”
In the meantime, patience is the name of the game, but McGlone does expect to see an end to the US Federal Reserve’s rate hiking by the end of the year, which he says ought to spur a rally for Bitcoin and gold.
“Most central banks in history hike[d] rates with the world tilting toward recession,” noted the Bloomberg analyst. “Lower commodity and risk-asset prices may be the only way out with deflationary implications, which should buoy the price of gold and its digital version, Bitcoin.”
Furthermore, he expects Bitcoin and crypto to outperform other commodities in the year ahead.
“It’s been a bad decade for commodities and an exceptionally good one for Bitcoin, and 2022 may prove the higher-price cure stronger than ever, favouring the crypto. With Federal Reserve tightening nearing an endgame, risk versus reward may be tilting toward resuming the enduring upward trajectory in Bitcoin, notably versus most commodities.”
McGlone also sounds confident that Bitcoin will outperform in the long term to become a “high-beta version of gold and US Treasury bonds”.
“The Bitcoin-to-gold ratio [is] at about 10x, which was first reached in 2017. In a world rapidly going digital, the benchmark crypto is a top competitor to old-guard gold,” he added.
Billions will use blockchain, says Pantera Capital CEO
Meanwhile, Dan Morehead, head of institutional asset manager Pantera Capital, thinks a bull run may well be on the way and that blockchain tech will be used by billions of people in the years to come.
In a recent interview with CNBC, Morehead said that he believes cryptocurrencies will gain significant traction in the near future due to their monetary network advantages.
“The important thing to keep in mind is crypto is such a disruptive thing that’s going to change so many aspects of our lives in the next decade,” said Morehead.
“I can see a world a few years from now where risk assets might still be struggling, but blockchain will be back to all-time highs based on its own fundamentals,” he continued.
“Hundreds of millions of people use blockchain today, but I think in four-five years, it’s going to be literally billions of people, and if you have a billion people, they want to buy a fixed number of coins, so [crypto] prices will probably go up.”
DeFi, NFTs and metaverse ‘should be in your portfolio’
And delivering a keynote speech at the Token2049 conference in Singapore, which got underway today, Morehead also highlighted the potential growth and value of decentralised finance (DeFi) as well as Web3 functionality, NFTs and metaverse applications.
As reported by Cointelegraph, Morehead believes these are the areas of crypto that hold the most investment promise, who reportedly said:
“We’re almost at the point where half of the entire market are things that aren’t the two main blockchains and I’m still wildly bullish on Bitcoin and Ethereum,” adding:
“But I just think these [DeFi etc] projects are going to perform even better and should be in someone’s portfolio.”