Bitcoin (BTC) Is “Untouchable” Despite Continued Regulatory Pressures In The Cryptocurrency Sector, and those who don’t have any cryptocurrency exposure are “seriously dumb,” according to Bloomberg senior commodity strategist Mike McGlone.
During an April 3 broadcast with cryptocurrency podcaster Scott Melker, McGlone argued that unlike other cryptocurrencies like Ether (ETH), bitcoin could not be killed by regulators because it is more decentralized.
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“There’s a lot of disdain for the fact that regulators oppose this whole industry, and that’s what stands out most about bitcoin,” says McGlone.
“Nothing can be done to him, he cannot be killed and it is something 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 say okay, well that’s a little scary, but you can’t do that to bitcoin; So it’s good and it’s impressive,” McGlone added.
The cryptocurrency sector has recently faced a wave of regulatory crackdowns in the United States.. The United States Securities and Exchange Commission filed charges against crypto exchange Kraken for its staking services, and subsequently sued stablecoin issuer Paxos over Binance USD (BUSD). The regulator also proposed rule changes targeting crypto companies operating as custodians.
McGlone stated that he remains bullish on BTC, but that he expects the price to drop again at the same rate as other assets if a recession occurs.
Back in January, he warned that BTC might not experience the expected rise yet, as macro conditions are difficult and rising interest rates put pressure on it.
According to McGlone, An April 2 decision by the Organization of the Petroleum Exporting Countries (OPEC) to cut daily oil production makes a recession more likely, as does the Federal Reserve’s rate hikes to curb inflation.
“We had our morning call this morning and our economist Anna Wong said: Yes, your base case is that that recession starts in the third quarter,” he said.
“OPEC contributes to it. Fed tightening contributes to it. So all assets have to go down. That means bitcoin too. It’s the fastest horse in the race. So overall, I’m relatively bullish.” .
According to McGlone, it is “seriously foolish” to risk not having some exposure to cryptocurrencies or to try to get in the way of it.
“For me, the key to bitcoin is, If you’re a money manager, why take the risk of not having some of this revolutionary asset, especially since it’s so controversial that you want to have at least some of it because you don’t want to look like a jerk throughout history?” , said.
“The smart ones get it; we’re not going to be a Blockbuster or Sears, and we’re going to be part of this technology.”
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