Bloomberg Analyst Says Ethereum (ETH) Could Outperform Bitcoin (BTC) and Stocks as ‘1929’-Style Conditions Intensify
A senior Bloomberg analyst says that with global markets in turmoil, Ethereum (ETH) could outperform Bitcoin (BTC) and the stock market.
Bloomberg commodities strategist Mike McGlone says his 53,900 Twitter followers that Ethereum has built a strong foundation in adverse market conditions and now has a solid chance for more price appreciation.
McGlone shares a chart that shows the price of ETH maintaining a sideways foundation despite constraints in USD liquidity, which often correlates with risk assets.
“What’s stopping Ethereum from outperforming Bitcoin, stocks? Ethereum’s successful transition to proof-of-stake amid the global energy crisis and its dominant position at the epicenter of the digitization of finance and money could be a basis for sustained price appreciation.”
McGlone also says that Ethereum may also have an advantage over Bitcoin that could see it surpass it in the future. According to the analyst, the digital asset number two by market capitalization may have a better tokenomic structure that could help keep ETH more scarce than BTC.
“Ethereum Performance Edge vs. Bitcoin – Supply Falling Faster: Ethereum May Have Outpaced Bitcoin in Definable Declining Supply Amid Widespread Use and Rising Demand.”
Looking at the wider macro climate, McGlone is currently forecasts a 1929-style recession triggered by sudden monetary policy tightening by central banks.
“What is stopping the global tilt towards recession? The Fed is intensifying tightening and the most central banks in history are playing again despite deflating markets amid falling global GDP in the wake of the biggest liquidity pump in history in 2020-21, which looks like 1929.”
At the time of writing, Ethereum is changing hands at $1,549.
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