• Mike McGlone, senior macro strategist at Bloomberg Intelligence, predicts that a recession could be the top catalyst to push gold prices above the $2,000-per-ounce range.
• The global cryptocurrency market capitalization is currently around $1.08 trillion and bitcoin has never seen a U.S. recession nor Fed tightening before.
• According to McGlone’s data, there is a high probability of an economic contraction which may push gold prices higher in 2023 if a recession occurs.
Mike McGlone Shares March Outlook
Bloomberg Intelligence senior macro strategist Mike McGlone shared his March outlook this week concerning assets like commodities, precious metals, equities, and bitcoin. He noted that the „top catalyst“ for gold to rise above the $2,000-per-ounce range is a recession with a sharp drop in stock markets as well as an economic contraction from the yield curve in about 30 years and Federal Reserve still tightening its stance. The global cryptocurrency market capitalization today is $1.08 trillion with bitcoin’s 50-week moving average below its 200-week level amid Fed’s tightening; however it has bounced to around $25,000 recently signaling divergent strength vs central bank according to McGlone.
Gold Prices Could Reach Above $2K
McGlone believes that gold prices have potential to reach above $2k per unit if the U.S economy slides into a recession due to its greatest potential for economic contraction from the yield curve in about 30 years and Federal Reserve still tightening its stance which would guide most metals lower and gold higher in 2023 according to him. He also mentioned that bitcoin has never faced this kind of situation before but if it can sustain above $25k then it will signal divergent strength vs central bank as swift snapbacks are typical of bear markets.
Data Predicts High Probability of Recession
The chances of a recession look likely according to Mike Mcglone’s data he stated “Based on the highest probability of recession from three month – 10 year treasury curve in our database since 1992″. This would suggest that if indeed a US recession does occur then chances are high that gold price could soar up above 2K per ounce which was his point of view regarding this matter when he was discussing different assets like commodities ,precious metals ,equities and cryptos earlier this week .
Impact on Bitcoin Price
When talking about bitcoin price ,Mc Glone questions whether recent rally was hollow or an enduring recovery with other factors such as Fed tightening impacting crypto market cap which currently stands at 1 trillion dollars approximately indicating some decrease over last day by 1 percent 57 percent .He further added that at some point most risk assets will bottom out because US central Bank is still in tightning mode but there is always hope as long treasuries yields remain low compared to historical levels .
Conclusion
In conclusion Mike Mc Glone discussed various factors such as US Economy sliding into recssion ,Fed Tightening ,treasury yields remaining low compared to historical levels and so on impactng different asset prices including precious metal such as Gold which have great potential reaching beyond 2000 USD per ounce depending upon how US Economy behaves and reacts going forward .Moreover Cryptocurrency Market cap also stands at decent figure of 1 Trillion Dollars indicating slight decrease over last day .