Bloomberg analyst says Bitcoin (BTC) is the ‘fastest horse’ – but issues financial warning
Bloomberg Intelligence strategist Mike McGlone says Bitcoin (BTC) may be the best option for macro investors, but warns that a looming recession could pose a threat to gains in the short term.
In a recent live stream with Scott Melker, McGlone says Bitcoin’s decentralized nature will protect it from US regulators who appear to be increasingly targeting the crypto space.
Top US regulators have publicly stated that they consider Bitcoin a commodity.
“That is the key where Bitcoin stands out [is] you can’t do anything about it and you can’t kill it. It’s just outstanding. It is untouchable. You can 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 fine, it’s a little scary. You can’t do that to Bitcoin. That’s just why it’s nice and impressive.”
McGlone says he is bullish on Bitcoin, but says he also expects a recession in the third quarter of the year, which will weigh on risk assets like BTC.
He says that OPEC’s (Organization of the Petroleum Exporting Countries) decision on Sunday to reduce daily oil production makes a recession more likely, as well as rate hikes by the Federal Reserve to bring down inflation.
“We had our morning conversation this morning and spring [Bloomberg] Economist Anna Wong said: Yes, their starting point is that the recession will start in Q3. Starting to move it forward a bit now. OPEC helps with that. Fed tightening is helping that. So all assets must go down. So does Bitcoin. It is the fastest horse in the race. So I’m generally relatively bullish.
But if I expect the stock market to still fall a third from here, I have to expect that weakness, and that’s still my base case. And now crude oil is accelerating that problem. OPEC is just admitting that they see the global demand problem starting, and they are responding as a rational cartel would within economic rationality.”
Bitcoin is trading at $28,071 at the time of writing.
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Featured image: Shutterstock/KHIUS/Natalia Siiatovskaia
