Bloomberg Intelligence Senior Macro Strategist, Mike McGlone, recently shared his perspective on Bitcoin’s future.
In a recent interview, Mike McGlone, Bloomberg Intelligence Senior Macro Strategist, provided evaluations on the outlook of Bitcoin.
Bitcoin’s price recently experienced a spike following BlackRock’s application for the Bitcoin Spot ETF, causing it to hover around $30,000. However, Mike McGlone cautioned that this upward momentum may be short-lived.
According to Mike McGlone, the recent increase in Bitcoin’s price can be attributed to BlackRock’s ETF application. However, he emphasized that while many believe this indicates approval is imminent, it is still uncertain and may not occur this year.
Mike McGlone pointed out that Bitcoin continues to trade as a risk asset, similar to the stock market. He highlighted the close relationship between Bitcoin’s performance and market liquidity. McGlone emphasized that for Bitcoin to demonstrate strength separate from the stock market, it needs to withstand the upcoming recession and establish its differentiation from traditional stocks.
“Bitcoin’s Risk Level at $30,000 Is Too High”
The strategist highlights the importance of Bitcoin demonstrating its ability to outperform other assets. He emphasizes that at the current price of $30,000, Bitcoin appears highly risky, particularly in the event of a global economic downturn, where many risky assets are likely to experience negative effects.
When discussing the regulatory landscape for cryptocurrencies, McGlone recognizes the industry’s increased scrutiny, mentioning examples like Coinbase and Binance. However, he asserts that such regulatory measures are crucial to curbing excessive speculation, which is often associated with innovative technologies like cryptocurrencies.
Drawing a parallel to historical instances of speculation in various industries, McGlone highlights the abundance of cryptocurrencies in the market, noting that only a few, like Bitcoin and Ethereum, possess substantial technological significance.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
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