Bitcoin (BTC) is “untouchable” despite ongoing regulatory pressures in the crypto sector, and those who don’t have crypto exposure are “seriously silly,” according to Bloomberg’s senior commodities strategist Mike McGlone.
During an April 3 stream with crypto podcaster Scott Melker, McGlone argued that unlike other cryptocurrencies like ether (ETH), Bitcoin cannot be killed by regulators because it is more decentralized.
“There’s so much contempt for regulators pushing back the entire space, and that’s the main place Bitcoin excels,” McGlone said.
“You can’t do anything about it, and you can’t kill it, and it’s just unprecedented; it is untouchable.”
“You could argue that Ethereum is a security when you hear about all these upgrades and people doing this and that to make it better. I think, okay, that’s kind of scary, you can’t do that to bitcoin. so it’s good and impressive,” added McGlone.
The crypto sector recently faced a wave of crackdowns in the United States when the US Securities and Exchange Commission (SEC) filed charges against crypto exchange Kraken over its staking services and then stablecoin issuer Paxos over Binance USD (BUSD). sued. The regulator also proposed rule changes targeting crypto firms acting as custodians.
McGlone stated that he is still bullish on BTC but expects the price to fall back in lockstep with other assets if a recession hits.
Back in January, he warned that BTC might not yet see the projected surge due to challenging macroeconomic conditions and pressure from rate hikes.
According to McGlone, the Organization of the Petroleum Exporting Countries (OPEC) decision on April 2 to reduce daily oil production makes a recession more likely, as do rate hikes by the Federal Reserve to curb inflation.
“We had our morning call this morning and our economist Anna Wong said yes, her base case is that this recession is going to start in the third quarter,” he said.
“OPEC is helping with that. Fed tightening is helping with that. So all assets need to go down. That means Bitcoin too. It’s the fastest horse in the race. So overall I’m certainly relatively bullish.”
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In McGlone’s view, it’s “seriously silly” to take the risk of not being exposed to crypto or trying to get in its way.
“The most important thing I consider simplistically for bitcoin is if you are an asset manager, why would you take the risk of not having some of this revolutionary asset, especially since it is so controversial that you would want at least some of it, because you don’t want to come off as an idiot about the story,” he said.
“The smart guys get it; we’re not going to be Blockbuster or Sears, and we’re going to be part of that technology.”
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