According to the Bloomberg senior commodities analyst, bitcoin is “untouchable” despite the continuous regulatory challenges in the cryptocurrency industry, and those who don’t have any exposure to the cryptocurrency market are “really foolish.”
During a webcast on April 3 with crypto podcaster Scott Melker, McGlone stated that, unlike other cryptocurrencies such as ether, bitcoin could not be extinguished by authorities because it is more decentralized than other cryptocurrencies.
US regulators have recently been particularly harsh on the cryptocurrency industry, first charging Kraken, a cryptocurrency exchange, for its staking services and then suing Paxos, a stablecoin issuer, over Binance USD. The agency has also suggested new regulations explicitly aimed at custodial cryptocurrency exchanges.
Recession will likely affect bitcoin
Although McGlone is still optimistic about bitcoin, he believes its value will fall along with other assets if a recession occurs. In January, he cautioned that difficult macroeconomic circumstances and pressure from interest-rate rises might delay BTC’s expected ascent.
McGlone claims that the decision by OPEC to limit daily oil supply increases the likelihood of a recession and interest rate rises by the Federal Reserve to curb inflation.
The Federal Reserve’s recent tightening has been beneficial in this regard. All assets could thus decline with bitcoin as well, according to Glone, the quickest runner in the field. However, he still has a positive outlook on the future.
McGlone thinks it’s “really foolish” to take the chance of not having any crypto exposure or attempting to stop it.
“Simply put, if you’re a money manager, why take the risk of not having any of this revolutionary asset, especially given it’s so contentious you want to have at least some in it because you don’t want to appear like an idiot over history,”
Bloomberg senior commodity analyst Michael McGlone
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