Analyst Asserts Bitcoin’s Resilience in the Face of Regulatory Scrutiny

According to Bloomberg’s senior commodity strategist, Mike McGlone, Bitcoin is not affected by regulatory pressures in the cryptocurrency industry and people who don’t have exposure to cryptocurrency are making a mistake.

He believes that Bitcoin is different from other cryptocurrencies like Ether because it is more decentralized, which means it cannot be easily eliminated by regulators. McGlone added that there is a lot of resistance to regulators trying to control the cryptocurrency space, but Bitcoin stands out because of its resilience.

“You can’t do anything to this, and you can’t kill it and it’s just unprecedented; it is untouchable.”

Mike McGlone added that while Ethereum is constantly being upgraded, it could be argued that it behaves like a security, which makes it a bit concerning. On the other hand, Bitcoin remains impressive and stable because it cannot be easily upgraded. The crypto industry is currently facing a wave of crackdowns in the US, with the SEC charging Kraken for its staking services and suing Paxos, the issuer of stablecoin Binance USD. The regulator also proposed new rules to regulate custodians in the crypto industry.

Despite his bullish outlook on Bitcoin, Mike McGlone expects its price to decrease in tandem with other assets if a recession occurs. He had previously cautioned in January that the expected surge in BTC might not happen yet due to tough macroeconomic conditions and the impact of interest-rate hikes. McGlone cited the recent decision by OPEC to lower daily oil production and interest-rate hikes from the Federal Reserve as factors that could increase the likelihood of a 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,” he said.

Mike McGlone believes that due to the recent decision by OPEC to decrease daily oil output and the Federal Reserve’s interest-rate hikes, a recession is likely to occur. As a result, all assets, including Bitcoin, are expected to decrease in value.

However, he still maintains a relatively bullish outlook on Bitcoin, as it is the fastest horse in the race. McGlone emphasizes that not having any exposure to cryptocurrency or trying to impede its progress is unwise. He considers it “seriously silly” to take such a risk.

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