Last Updated: 6 June 2022
That’s how we like it: bitcoin and many other cryptocurrencies are turning a beautiful green this morning. Bitcoin and Ethereum have risen 5% in the last 24 hours, and Cardano and Solana are up 10%.
Bitcoin heading for 30,000 euros
Such percentages (both up and down) are rare in other markets, but a weekly occurrence for cryptocurrencies. Not surprisingly, many analysts and investors praise cryptocurrency.
Below is the bitcoin price for the past 24 hours, as you can see the value is creeping towards 30,000 euros.
One of those analysts who praises Bitcoin (and Ethereum) is Mike McGlone of Bloomberg. He was asked to share his opinion during an interview with Kitco News. The interview was largely about cryptocurrency and the overall economy.
Learn from previous crashes
The first topic is the so-called crypto-winter. This term is being used more and more often to refer to the constantly falling prices on the crypto market. Until this week, for example, bitcoin had experienced eight red weeks in a row, which is unprecedented. McGlone acknowledges this and compares the fall in all risky investments to previous events.
“I think what’s about 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 after the crash of 1987. It’s that far, and all the risky assets, everywhere, from flats in Miami and Toronto to the stock market. The biggest inflation in 40 years is starting now and most people’s lives are changing because of it.”
By those years, he is referring to:
- 1929: In October of 1929, Wall Street crashed and this had a major impact on the whole world. This was followed by the crisis of the 1930s.
- 1987: Black Monday on 19 October 1987 was the first stock market crash after the Second World War. It began on the Hong Kong stock exchange, and as the stock exchanges opened in the rest of the world, the prices there fell sharply. It took 15 months for most stock exchanges to recover.
- 2008: The credit crisis or banking crisis is the name given to the crisis in the financial markets that peaked in the autumn of 2008 and only ended in the course of 2011. The crisis was mainly triggered by problems in the US housing market.
Bitcoin in institutional investor portfolios
McGlone went on to say that he considers bitcoin one of the “best” assets. He expects bitcoin to “outperform” other risky assets. This is partly because institutional portfolios have just started adding bitcoin and this will only grow.
An institutional investor is a company or organisation with employees who invest on behalf of others. Some well-known types of institutional investors include pension funds, banks, mutual funds, hedge funds and insurance companies.
Bitcoin to reach $100,000 within a few years
In the short term, he thinks bitcoin could still fall to $20,000 (18,700 euros), but he would not be surprised if the price rises to $100,000 (93,200 euros) within a few years.
“My outlook is that I think gold, long-term bonds and Bitcoin are the best assets to own.”
Ethereum changes world of fintech
Bitcoin is not the only cryptocurrency McGlone is looking at, however. He thinks Ethereum can also be part of institutional portfolios and therefore considers ether one of the big tokens to keep an eye on.
“Ethereum is revolutionising the world of fintech, of tokenisation. If you look at NFTs, most of them are based on Ethereum tokens. Now yes, there are some competitors, but that shows you what is happening in the space. That’s not going away.”