Commodity strategist Mike McGlone predicts recession as top catalyst for gold’s rise above $2,000
Certainly gold and silver prices were low last week and gold was about to fall below $1800 an ounce and silver was above $20000 as we were seeing as per the data. The capitalization of the global cryptocurrency market if we see today is $1.08 trillion, which is about 1.57% less than the previous days. To be sure, earlier this week Mike McGlone, senior macro strategist at Bloomberg Intelligence, shared his forecast for commodities and precious metals and equities and assets like bitcoin. Many questions about bitcoin whether the recent rally was a hollow bottom line or a sustainable recovery.
The director and analyst noted that cryptocurrencies have never faced a US recession and tightening from the Federal Reserve and that bitcoin’s 50-week moving average is below 200 weeks, and elaborated that at some point Most risk assets will go down but the Federal Reserve is still in tightening mode and most markets have seen a rally.
“Bitcoin’s 50-week moving average has never dipped below 200 weeks amid the Fed’s tightening stance,” McGlone said, and the cryptocurrency has seen it soar. Further strategists say swift snap-back is specific to the markets and if bitcoin holds above $25000 it will signal different strength than its central bank where competition could take place. With regard to gold he says that if the US economy is in recession Precious metals have a good chance of reaching $2000 per unit if the U.S. collapses, and the strategist wrote that “the greatest potential for economic contraction from the yield curve in nearly 30 years and the Federal Reserve is still tightening and will hold most metals in 2023.” A US recession is certainly a top catalyst that could push the metal above $2000 an ounce. Additionally, he added that according to his data, the bearish potential is visible and after 1992 there is definitely a record in our database. The 3 month to 10 year Treasury curve has the highest downside potential that we can measure. Another reason it may be different this time is that the Federal Reserve’s instincts are familiar to the 2022 inflation market and they also think that unless the Federal Reserve decides to move away from its seven policies, This can be done and it is possible. This rollup concept aims to improve its scalability and reduce fees while maintaining the benefits of security and decentralization in the underlying blockchain network. If we talk about the founder of Eclipse
Neil Somany explained to TechCrunch, “Ethereum is obviously still really slow and very expensive and so there was a very clear roll up that was the way to scale up Ethereum and we were thinking what would happen if we were to scale up too much want a parallel roll-up, but the difference is we stick to this benchmark of tooling that already exists like the Solana Virtual Machine or the Ethereum Virtual Machine (EVM).”
Eclipse has raised $15 million in the last year which is backed by Polychain, Tribe Capital, Struck Crypto, Soma Capital, Tabia and Galileo of course. The startup, which is called Solana Foundation, also has a grant and has worked with Celestia, Eigenlayer, and Near. Somany, a former Terra blockchain developer, worked on Terranova, a Terra-based Ethereum Virtual Machine (EVM) project, before the Terra ecosystem collapsed.