Impending Recession and Bear Market Looming, Warns Bloomberg Strategist

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Bloomberg's Macro Strategist Predicts Cryptocurrency Traders Will Seek Refuge in Gold Amid Impending Recession

Mike McGlone, a strategist at Bloomberg, has warned that the ongoing bear market in cryptocurrencies may lead investors to diversify their portfolios by investing in traditional safe-haven assets like gold. As per his analysis, the bear markets are yet to be over, and he believes that traders may shift their focus to gold, which typically appreciates in value during economic downturns. McGlone predicts that cryptocurrency investors will consider gold a more secure means of storing value and that it may outperform Bitcoin in the event of an upcoming recession.

The analyst believes that the fear of missing out (FOMO) will soon drive cryptocurrency traders to invest in gold as a safe-haven asset. However, as the bear market continues, they will realize that they can achieve a more stable return of 4-5% with T-bills, causing a shift away from gold. McGlone also notes that gold, often referred to as "Boomer rocks," will become a self-fulfilling asset as more investors turn to it as a store of value during economic uncertainty.