I’ve never believed in inflation hedging because it’s so long term bitcoin has to exist because I think decades before that event it’s still a baby, it’s evolving. So early is such a small part of global portfolios, but in terms of a potential hedge against banking troubless.
Yeah, I mean it’s coming up they’re like with gold and treasury bonds. Now that’s just the high beta, high risk version, but I think it’s people are realizing well. I really probably have to have some of this particularly, if I’m looking to getaway from risk assets like the stock market this Bitcoin stuff is.
If the stock market, if risk assets do recover it’s probably gonna outperform Mike McGlone senior commodity strategist at Bloomberg intelligence believes that the banking crisis could trigger. The next crypto bull run with Bitcoin outperforming all other cryptocurrencies magalon thinks that, as major Banks collapse confidence in traditional financial institutions is being shaken.
Making Bitcoin more attractive as a bank risk hedge McGlone argues that the US Federal Reserve’s reluctance to ease monetary policy despite the banking crisis is pushing the US economy into recession.
He believes this macro environment will eventually favor Bitcoin to outperform all other cryptocurrencies to support his thesis. mcgloan cites the correlation between Bitcoin and the Sand P 500 Index which has been significant in recent years.
He suggests that, the more Bitcoin can sustain above twenty five thousand dollars. The more the S P 500 Index will potentially pressure below 4000 indicating that, Bitcoin is about to take off in his view. Bitcoin will outperform virtually all other cryptocurrencies including ether, McClellan explained on Twitter Tuesday that, a super cycle may be happening in Bitcoin.
He tweeted looking for a super cycle. Bitcoin outperforms Commodities with declining risk. Bitcoin is outperforming gold, the best-performing commodity of the old guard in 2023, by almost 10x through March 20, which could indicate a super cycle is unfolding in the cryptocurrency.
He also tweeted about what is keeping bitcoin from outperforming most assets. Bitcoin will be viewed more as a digital gold hashtag and perhaps a departure from excessive speculation in a world moving in this direction. Global Banking Crisis 2023 and Growing Potential for May Major Economic Reset Stock Market Crash in This Blog McGlone discusses how Bitcoin could outperform all other assets this year and how Bitcoin provides a hedge against a marketing slump.
But not a hedge against inflation he also talks about, the feds rate hike. Bitcoin was born out of the last significant financial crisis or the great financial crisis in 2008-9 and I think, this one’s it’s in the process of defining Bitcoin of global digital collateral.
Now, that’s the current state Bitcoin has done very well bouncing back above 25000 resistance at the time we’re taping this on Wednesday it’s around 27 000. While the stock market still is under pressure and I think what’s happening is, we’re seeing a significant rally in this Bitcoin this year up to about 73 percent.
Obviously, it was two oversold last year, but partly because people are realizing that, it’s becoming more like cold and U.S treasury bonds but, just a higher beta version of gold and it’s getting that gaining accolades as maybe not as so much a store value yet.
But global digital security around the world is going digital, so this financial crisis is pretty significant, and I think people are realizing what’s going on with bitcoin. it’s nobody’s project and nobody’s responsibility and it’s totally alien as a goal and the fact is that it has a definable definition that narrows the supply and it’s so low it can be caught that early and I think that is what caused it banking crisis.
When people realize, oh my money may not be so safe in a fractional Reserve banking system, it might be safer in a fully collateralized stable coin or crypto dollar. It seems to be hitting that inflection point that I’ve been looking for a while. I’m just like you know what deer look like in headlights.
Wow! is it finally here or is it an overwhelming fast growing technology and most of the nice smart people in this country get it. Note the development of the euro-dollar, which in fact was not, But if you look at the bigger picture, it’s going to be really difficult to stop this technology. If they hike rates again, the ECB made50basispoints a week ago and this is likely to be the last hike. We may be headed for a deep recession, possibly a depression
The ECB this is a global bank run and it potentially potential in this country is just getting started, remember it’s basically only been a year and one week since the first hike. The most aggressive hikes on a global basis ever and there’s this rule of long and variable AG.
So, what I see is the bank situation is a tree in the force of, what I’ve been pointing out for a while Commodities collapsing. Now this just start getting started because everything is tilting towards recession except things like unemployment and unemployment can only go one way it’s so low, it can only go up.
You know the trading of US Dollars offshore in Banks is that really supported by the US government. but, we’re seeing I think this just overwhelming so I think, I don’t know where that’s going to go. I know that if the current administration keeps pushing, they will probably be eliminated within two years.
But if you look at the bigger picture, it’s going to be really difficult to stop this technology. If they hike rates again, the ECB made50basispoints a week ago and this is likely to be the last hike. We may be headed for a deep recession, possibly a depression
The ECB this is a global bank run and it potentially potential in this country is just getting started, remember it’s basically only been a year and one week since the first hike. The most aggressive hikes on a global basis ever and there’s this rule of long and variable AG.
So, what I see is the bank situation is a tree in the force of, what I’ve been pointing out for a while Commodities collapsing. Now this just start getting started because everything is tilting towards recession except things like unemployment and unemployment can only go one way it’s so low, it can only go up.
Which means the recession is virtually guaranteed, you look at things like the yield curve. so I think the FED is just way far behind like, they were so far behind in inflation. Now that, inflation is potentially collapsing and I’ll point that in a second.
The leading indicators peaking housing the banking crisis Commodities means, they should have stopped and they still hiked raids, so I fully see looking forward we’re going to have official acknowledgment of deflation other from government statistics not from forward-looking things like, my Commodities and the FED Titan rate.
So, they’re so far behind the key thing we’re going to end with we’re going to find out what and get Is. Now by this time, next year Giovanni when we’re talking I’m pretty sure we’re going to be talking about a significant enduring deflationary forces.
The FED not easing with the ease that, it has in the past the Bloomberg intelligence strategist explained last week, why he expects Bitcoin to continue to outperform gold and the stock market facing the Federal Reserve inflation and War 2022 may be primed for risk asset reversion and Mark another milestone in bitcoin’s maturation.
He tweeted Friday, it’s unlikely for Bitcoin to stop outperforming Gold stock market mid bumps in the road as the FED attempts another rate hike cycle magalona pint and Another tweet posted on Saturday commented on how recent collapses of major banks, including Silicon Valley Bank and Signature Bank, have impacted Bitcoin.
The strategist detailed banking issues May Define Bitcoin and crypto dollars. Bitcoin may be progressing to trade more like U.S treasury long bonds and gold as Banks come under stress on the back of the bond price collapse.
Bitcoin sustaining above 25 000 is a clear sign of Divergent strength. let us now continue with the blog, as mcgloan talks about, how the banking crisis is impacting dollar-based staple coin and Bitcoin outperforming all other crypto assets that, I think the answer is yes. it’s kicking off a next Bull Run but it’s very much subject to the ebbing tide of the stock market.
I’m we’re talking right now, with the S P 500 around 4 000, I feel expected to go to 3000 in a recession. A normal recession which is predicted with the highest probability in since 1982 from the yield curve and that’s going to be a pressure factor in Bitcoin.
But potentially, you’re hitting that inflection now where this recession is going to be great for things like gold and long bonds and the thing is Bitcoin in there. I think it’s hitting that but it’s just hard to say for sure, but I think the more the Bitcoin can sustain above 25 000 and the more the SP 500 potentially pressures below 4000.
You’re going to have an indication that Bitcoin is just going to take off and we have to get there it’s fun it’s a unique that, the problem with the new the fintech and the new technology was the Old Guard technology. It’s depositing the bank that’s the extent that it dropped, because of the potential that this it’s bank deposit which is fractionally reserved was not safe.
So, what’s it’s proving is these fully collateralized crypto dollars potentially are much safer than Banks, there’s no FDIC Insurance needed. It needs obviously needs regulation that’s just a matter of time, it’s how the U.S regulates it, it’s going to matter.
But it’s happening offshore things like, we’ve seen a major move away from usdc back towards tether. Tether is the biggest one, it’s controversial but, I’ve been just following tethers since it was around 2 billion back in 2018. It just keeps going up with bumps in the road why because, I think it’s like what’s happening with you what happened with Euro dollars about five decades ago.
When entities needed access to the dollar away from the U.S banking system, they did in Banks outside the U.S and created eurodous system, this is happening in crypto dollars. It’s happening fast the technology is overwhelming it hasn’t been I think, we’re at the stage now that Bitcoin is going to outperform virtually.
All crypto assets if my base case of a severe global economic reset recession is hands out that’s my base case and I think Bitcoin will continue outperforming. I see ethereum right now stuck between a thousand and two thousand.
Now it’s at Seventeen hundred two thousand is very good resistance. it is the base layer for tokenization crypto dollars and things like that but now we’re in that stage where, I think if I’m correct the stock market goes closer to three thousand s p i 500 and golden and treasury Bonds outperform in this significant.
Recession in the U.S than I think Bitcoin will outperform virtually, all cryptos including ethereum that’s been the case so far this year. It’s the existing Trend and I think it’s going to more like the accelerate. so we have to get through this bump in the road and I think the bottom line to remember from my standpoint as a strategist.
It’s my duty to warn people, when I see a hurricane coming. I see a hurricane coming economically that’s just based on what you see we Sparta spoke about earlier and it’s Central bank’s tithing. It’s fight a bank crisis and despite forward-looking deflationary forces Bitcoin will probably be the best performer among the cryptos including ethereum.
Last week mcgloan also explained, why he expected Bitcoin to continue to outperform gold and the stock market? He pointed out that macro economic parameters such as fed hikes inflation and the Eastern European War could steepen bitcoin’s maturation Michelob noted that the ongoing fed battle against inflation with furtheraid bitcoin’s outperformance over gold and traditional stocks.
The Bloomberg commodity strategist also doubts the global economy would endure the same periods of heavy dollar liquidity as in 2022. As a result investors are more likely to adopt a Keener Outlook toward Bitcoin. So far Bitcoin has also outperformed 97 percent of companies listed in the S and P 500 Index.
This year only 12 companies managed to deliver higher yields than Bitcoin in 2023 with the remaining 488 falling short the FED enacted a quarter percentage Point interest rate increase after its latest policy meeting expressing caution about the recent banking crisis and indicating that hikes are nearing an end fed projections call for just one more hike.
This year a 25 basis point increase was widely anticipated the decision makes it the ninth consecutive interest rate hike and the second quarter point increase in a row after a series of bigger rate hikes were implemented throughout 2022.
