Bloomberg macro strategist Mike McGlone predicts that crypto traders will start funneling their wealth into a non-digital asset due to an impending recession.
In a new interview with Scott Melker, McGlone says bear markets are likely not over and crypto traders will likely start shifting their investments to gold, which tends to rise in value during recessions.
“Bear markets don't end like this. I don't see that. They don't end [after] months of pessimism, but years of pessimism. And that to me is where we're headed, especially something like this that has hundreds of years of foundation behind it.
McGlone predicts that crypto investors will turn to the precious metal gold as a safer store of value. He previously said that gold is likely to perform better than Bitcoin (BTC) in the possible coming recession.
“The key thing I want to touch on a bit is the gold/Bitcoin ratio. Here is my prediction of the future…
Crypto folks are going FOMO (fear of running out) in gold – for a while. It's late for that...
They'll realize, okay, I made so much money. I can get about 5% on a Treasury, 4%, lock it in, the bear market kicks in, there's a lot of excess here, and this thing we call "Boomer rocks" is going to be self-fulfilling. ”
McGlone predicts that a recession is coming and crypto markets will suffer as investors are also likely to get bullish on Treasuries, which are seeing rising yields.
“This is the first recession for most crypto traders…
The Fed wants you to lose money. This is where we are right now. The Fed wants the stock market to go down. This is my interpretation. We are going to see FOMO in gold. We are going to see a bear market resume in cryptos, that was just the rebound. And there's only one other bull market I see coming and that's in treasury bond yields.
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