Bloomberg commodity strategist Mike McGlone says that Ethereum (ETH) will come out ahead due to the smart contract platform’s solid fundamentals.
Stansberry Research has a new interview with the analyst. Although it might take time to reverse the trend, it seems like the worst of crypto winter may be behind us.
“Cryptos have already backed up 80%, and you just don’t want to get too bearish when a thing is down 80%. I think we’re in the final stages of this bear market for cryptos, but it’s not going to be easy. Typically markets don’t just make a V bottom. They have to make it as difficult as possible and the key thing I’ve learned trading in markets, especially bear markets, is they’ll make you lose your hair, they’ll take money from everybody and they have to be volatile and difficult. That’s the key thing.
This is not crypto winter. This is an all-encompassing winter. Those are commodities. Commodities need to fall. If they don’t, the Fed is going to keep tightening until they do, and so that that’s to me the way I look at it.”
McGlone pointed out that ETH is still 12X higher than it was three years ago. This asset class outperforms all other asset classes and has strong support at a level close to its current price.
He stated that he believes ETH will win on the backs of increased adoption, declining supply, and decreasing demand.
“At some point we’re going to come out of this, but right now as we head towards the end of this year and we see [Fed] Chairman [Powell] The Fed’s expectations for next year are for tighter lending. We can still feel the dollar pounding. That is bad for all risk assets, but then let’s look forward.
Right now, let’s just look at the price of Ethereum. It’s $1,200. It was $100 at the beginning of 2019, just before the Covid phenomenon. So it’s still up 12X. It’s holding good support around $1,000. It may fall below that amount, but I fully expect it to be ahead and continue this upward trend.
The key thing to remember… Bitcoin and Ethereum, the two stalwarts in the space have declining and definable diminishing supply, and increasing adoption and demand. From a commodities standpoint, something’s got to change in that trajectory. I fully expect the adoption point to increase after bumps in the road, and prices have to go up over time.”
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Disclaimer: The Daily Hodl’s opinions do not constitute investment advice. Before making high-risk investments, such as in Bitcoin, cryptocurrency, or other digital assets that could be potentially dangerous, investors should do their research. Your transactions and losses are your responsibility. The Daily Hodl is not an investment advisor and does not recommend buying or selling any digital assets or cryptocurrencies. The Daily Hodl does not participate in affiliate marketing.
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