This is how we like to see it: Bitcoin and many other cryptocurrencies are turning green this morning. Bitcoin and Ethereum, for example, are up 5% in the past 24 hours, and Cardano and Solana are showing 10% growth. These kinds of percentages (both up and down) are rare in other markets, but a weekly cost for cryptocurrency. It is therefore not surprising that many analysts and investors praise cryptocurrency to the skies.
One of those analysts who is praising Bitcoin (and Ethereum) to the skies is Mike McGlone of Bloomberg. He was asked to share his thoughts during an interview with Kitco News. The interview was largely about cryptocurrency and the overall economy.
Learn from past crashes
The first topic is the so-called crypto winter. This term is increasingly being used to indicate the ever falling prices on the crypto market. Until this week, for example, bitcoin has had eight red weeks in a row, which has never happened before. McGlone acknowledges this and compares the decline in all risky investments with past events.
“I think what’s going to happen is the big turnaround. It’s just starting. It may be like the aftermath of 1929, but I think it will be like the aftermath of 2008 or maybe like the aftermath of the 1987 crash. stock market. The biggest inflation in 40 years is now starting and most people’s lives are changing as a result.”
With those years he means:
- 1929: In October of 1929, Wall Street crashed, which had a major impact on the entire world. This was followed by the crisis of the 1930s.
- 1987: Black Monday on October 19, 1987 was the first stock market crash after World War II. It started on the Hong Kong stock exchange, and as the markets opened in the rest of the world, prices fell sharply there too. It took 15 months for most stock markets to recover.
- 2008: The credit crisis or banking crisis refers to the crisis on the financial markets that reached a peak in the autumn of 2008 and only ended in the course of 2011. The crisis was mainly caused by problems in the housing market in the United States.
Bitcoin at $100,000 in a few years?
In the short term, he thinks that bitcoin can still fall to 20,000 dollars (18,700 euros), but he would not be surprised if the price rises to 100,000 dollars (93,200 euros) within a few years.
However, Bitcoin is not the only cryptocurrency McGlone is looking at. He thinks Ethereum can also be part of institutional portfolios and considers ether one of the big tokens to keep an eye on.
“Ethereum is revolutionizing the world of fintech, of tokenization. If you look at NFTs, most of them are based on Ethereum tokens. Well, there are some competitors, but that shows you what’s happening in space. That will not go away.”