Bloomberg senior commodity strategist Mike McGlone says that crypto assets will likely see a correction along with an imminent pullback in the stock market.
In a new interview with The Wolf of all streets host Scott Melker, McGlone that cryptocurrencies are risky assets, but he expects Bitcoin (BTC) and Ethereum (ETH) to come out stronger once the market recovers.
McGlone says that the flagship cryptocurrency now transitions from a “risk-on” to a “risk-off” asset.
“Here’s my prediction: the markets pull back. We finally get a 10%, maybe 20%, correction in the stock market. All correlations are one, which is usually the way it works. Bitcoin comes out better off for it. Ethereum, potentially too.”
Despite his bullish outlook for BTC and ETH, McGlone warns that dog coins and even (SOL) will not fair well.
Dog-themed memecoins, particularly Dogecoin (DOGE) and Shiba Inu (SHIB) exploded last year as Elon Musk and other celebrities mentioned them in the media.
“The bottom line is they are the riskiest of assets. There’s massive speculation. I mean the dog coins and even in things like Solana…
The rest of the space, we do have to admit, the speculation you saw in the dog coins last year was indicative of this. It’s just stupid and we’re going to tell the story to our grandkids.”