Bitcoin (BTC) is “untouchable” despite ongoing regulatory pressures in the cryptocurrency sector and those without some cryptocurrency exposure are “seriously foolish”, according to Bloomberg senior commodity strategist Mike McGlone .
During an April 3 stream With cryptocurrency podcaster Scott Melker, McGlone argued that unlike other cryptocurrencies like Ether (ETH), regulators couldn’t kill Bitcoin because it’s more decentralized.
Can #Bitcoin replace the benches? And can it remain uncorrelated if the markets crash again?
Discuss with weekly guests @mikemcglone11 and @daveweisberger1.
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— The wolf of all streets (@scottmelker) April 3, 2023
“There is so much disdain for regulators that they reject the entire space, and that is the key to where Bitcoin excels,” McGlone said.
“You can’t do anything to this, and you can’t kill it and it’s unprecedented; is untouchable.”
“I could argue 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, well that’s a little scary, I can’t do that to Bitcoin, it’s because of that’s good and impressive,” added McGlone.
The cryptocurrency sector has recently faced a wave of crackdowns in the United States, with the US Securities and Exchange Commission (SEC) filing charges against crypto exchange Kraken for its staking services, and later suing the issuer of the stablecoin Paxos over Binance USD (BUSD). The regulator also proposed rule changes targeting crypto companies operating as custodians.
McGlone stated that he is still bullish on BTC, but expects the price to drop again at the same time as other assets if a recession hits.
In January, he warned that BTC may not see the expected rise yet as challenging macroeconomic conditions and pressure from interest rate hikes are in place.
According to McGlone on April 2 decision by the Organization of the Petroleum Exporting Countries (OPEC) to reduce daily oil production makes a recession more likely, as well as increases in interest rates by the Federal Reserve to curb inflation.
“We had our morning call this morning and our economist Anna Wong said: Yes, your base case is that the recession will start in the third quarter,” he said.
“OPEC is helping that. Fed tightening is helping that. So all assets have to go down. That also means Bitcoin. It’s the fastest horse in the race. So overall, I’m relatively optimistic”.
Related: Bitcoin Likely to Outperform All Crypto Assets Post-Banking Crisis, Analyst Explains
In McGlone’s view, it is “seriously foolish” to risk not being exposed to cryptocurrency or to try to get in the way of it.
“The key that I see simplistically for Bitcoin is, if you’re a money manager, why take the risk of not having some of this revolutionary asset, particularly because it’s so controversial that you want to have at least some of it because you don’t want to be left like an idiot about history,” he said.
“Smart guys get it; we’re not going to be a Blockbuster or Sears, and we’re going to be a part of this technology.”
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