Cryptocurrencies such as Bitcoin and Ethereum have come under growing regulatory scrutiny from governments around the world due to concerns about money laundering, tax evasion, and consumer protection. The introduction of laws and regulations targeted at limiting the use of cryptocurrencies by many nations has made the market difficult for cryptocurrency investors and businesses to operate in.
A bold statement from analyst Mike McGlone has caught the attention of many. Read on.
Bitcoin: The Most Resilient Cryptocurrency?
Once considered a niche investment, Bitcoin has proven itself to be a true survivor in the face of regulatory pressures. According to Bloomberg’s senior commodity strategist, Mike McGlone, Bitcoin is “untouchable” and can weather any storm. In fact, he goes as far as to call those without any crypto exposure “seriously silly”.
In a recent interview with popular crypto podcaster Scott Melker, McGlone made a compelling case for Bitcoin’s resilience. While other cryptocurrencies like Ether may be more vulnerable to regulatory crackdowns, Bitcoin’s decentralized nature makes it much harder to kill.
The crypto industry is under fire in the United States, with a series of crackdowns shaking the sector. The U.S. Securities and Exchange Commission has filed charges against one of the largest crypto exchanges, Kraken, over its staking services. If that wasn’t enough, the stablecoin issuer Paxos has been sued over its ties to the popular crypto platform Binance. With regulators proposing new rule changes, the future of crypto firms operating as custodians is uncertain.
Looming Recession likely to occur in Q3
Mike McGlone, has stated that a recession is more likely to occur in the near future. He cites the recent decision by the Organization of the Petroleum Exporting Countries (OPEC) to reduce daily oil output, as well as interest rate hikes from the Federal Reserve to clamp down on inflation, as contributing factors to this outcome.
According to McGlone, the base case for a recession to begin in the third quarter is becoming increasingly likely. He suggests that all assets, including Bitcoin, will suffer as a result of this economic downturn. Despite this, he remains relatively bullish on Bitcoin, calling it the “fastest horse in the race.”