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Bloomberg: Bitcoin And Gold Could Benefit From This Financial Factor

An important Bloomberg analyst said that there’s a specific financial factor that could benefit gold and Bitcoin as well. Check out the latest reports below.

Bitcoin and gold could benefit from this factor

Accoridng to the latest reports, Bloomberg’s senior commodity strategist Mike McGlone said that a new deflationary period may be arriving to the financial landscape. More than that, Bitcoin (BTC) and gold could benefit from it.

The analyst said not too long ago that plummeting risk-on assets may evolve into a deflationary phase that boosts the king coin, the yellow metal, and US bonds.

“Too Hot Stocks vs. Maturing Bitcoin? Plunging risk assets in 1H [first half] are taking away inflation at a breakneck pace, which may translate into pre-pandemic deflationary forces resurfacing in 2H [second half]. Primary beneficiaries of this scenario may be gold, Bitcoin, and US Treasury long-bonds.”

You probably noticed that Bitcoin continued dipping over the weekend, and McGlone predicted that this week would see even more declines in risk assets.

He explained the big declines could reduce the need for the Federal Reserve to maintain its stance on monetary tightening.

“Down over 10% on Saturday, Bitcoin pointing to a big risk asset decline week. Feds 75 bps [basis points] hike may be the last, risk asset deflation doing the tightening for them. 1929ish – aggressive rate hikes despite plunging stock market, global GDP and consumer sentiment.”

At the moment of writing this article, BTC is trading in the red and the king coin is priced $20,176. Despite the massive market volatility, there are various optimistic predicitons about Bitcoin and other important digital assets in the crypto space these days.

For instance, it’s been revealed that there is a strong Cardano (ADA) bounce on its way. We suggest that you check out our previous article in order to learn more about this.

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