Bitcoin continues to be impervious to the regulatory pressures faced by the crypto sector, and not having some crypto exposure is downright “foolish,” Bloomberg’s senior commodity strategist, Mike McGlone, asserted.
On April 3rd, during a conversation with crypto podcaster Scott Melker, McGlone stated that, unlike other cryptocurrencies like Ether, regulators cannot eliminate Bitcoin due to its greater decentralization.
Can #Bitcoin replace the banks? And can it remain uncorrelated if markets crash again?
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McGlone argued that the growing resentment against regulatory backlash in the crypto arena makes Bitcoin stand out. Additionally, he explained that its uniqueness and unapproachability make it unchangeable and indestructible.
He further expressed his concerns about Ethereum being seen as a security, stating,
“You could make a case that Ethereum is a security when you hear about all these upgrades and people doing this and people doing that to make it better, I’m like okay, well that’s kind of scary, can’t do that to Bitcoin, it’s why it’s fine and impressive.”
The crypto sector in the United States has recently witnessed a spate of crackdowns. The U.S. Securities and Exchange Commission (SEC) filed charges against crypto exchange Kraken for its staking services and later sued stablecoin issuer Paxos over Binance USD. Additionally, the regulator has proposed rule changes targeted at crypto firms operating as custodians.
Despite these pressures, McGlone remains bullish on Bitcoin but anticipates a price drop in line with other assets if a recession occurs.
Recession Concerns May Impact On Bitcoin’s Growth
In January, McGlone warned about the possibility of Bitcoin not undergoing the anticipated increase. It is due to ongoing difficult macroeconomic circumstances and the pressures caused by rising interest rates.
On April 2nd, he pointed out that the likelihood of a recession increased when, the group of oil-exporting countries, also known as OPEC, decided to decrease their daily oil production. Additionally, interest rate hikes from the Federal Reserve may also lead to inflation and further contribute to a potential recession.
“We had our morning call this morning and our economist Anna Wong said, ‘Yeah, their base case is for that recession to kick in Q3.’ OPEC is helping that. Fed tightening is helping that. So all assets have to go down. That means Bitcoin too. It’s the fastest horse in the race. So I’m overall, certainly relatively bullish.”
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McGlone believes that smart people understand that Bitcoin will not fail like Blockbuster or Sears. Instead, it will be a successful technology.