Looking at macroeconomic conditions and possible Federal Reserve policies, Mike McGlone, chief commodity strategist at Bloomberg, believes that cryptocurrencies will outperform traditional assets in the coming year.
To Report In his new analysis, DailyHoddle, McGlone notes that in 2022, the value of the digital currency market has declined by $1.3 trillion by early December, which is roughly equivalent to the decline in the combined market value of Amazon and Google.
The strategist says that these figures show that Bitcoin and other digital currencies are still in the early stages of their growth.
Magalon added:
The Fed’s tightest contractionary monetary policies in 40 years are a good reason for a macroeconomic downturn, but 2023 is likely to be about the assets that benefit from the central bank’s policy turnaround. If they don’t move to ease austerity, the world could be heading sharply into recession, with implications for all risk assets. The basic situation in our economy is a long period of deflation, which will result in the growth of the digital currency market; As the Bloomberg Glassy Crepito index also confirms it.
The strategist says the dominance of stablecoins among the top five digital assets by market cap actually shows how valuable Ethereum is. He noted that this is the underlying technology of Ethereum, which enables fast and cheap transactions of these digital dollars.
Meglon said in the end:
Our bias is based on the principle that in the long term there will be few competitors that prevent this advanced technology from doing what futures markets and ETFs did. Other developments made possible by Ethereum include decentralized tokens and decentralized exchanges.
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