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Bloomberg commodity strategist Mike McGlone says that Ethereum (ETH) will come out ahead due to the smart contract platform’s solid fundamentals.

In a new interview on Stansberry Research, the analyst says it may take time for a reversal, but the worst of the crypto winter is likely 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.

Remember, this is not a crypto winter. This an everything winter, except for one asset class. Those are commodities. Commodities have to go down. 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 points out that ETH is still up 12X from where it was just three years ago, outperforming most asset classes, with a strong support fairly close below its current price level.

He says he fully expects ETH to come out ahead on the back of adoption, demand and diminishing supply.

“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] still pounding, we see the Fed fund rate expectations for next year still for more tightening a year from now. 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. At the end of 2019 before the whole Covid thing hit, it was $100. So it’s still up 12X. It’s holding good support around $1,000. It might get a little bit below that, but I fully expect that to come out ahead and to continue that upward trajectory over time.

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.”