Bloomberg Intelligence strategist Mike McGlone says Bitcoin (BTC) could be the best bet for macro investors, but warns a looming recession may pose a threat to its gains in the near term.
In a new 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 stated publicly they consider Bitcoin a commodity.
“That’s the key thing where Bitcoin sticks out [is] you can’t do anything to this and you can’t kill it. It’s just unprecedented. It’s untouchable. You could make a case 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 okay, well that’s kind of scary. You can’t do that to Bitcoin. It’s just why it’s fine and impressive.”
McGlone says he’s bullish on Bitcoin, but says he’s also anticipating a recession in the third quarter of the year, which would weigh down on risk assets like BTC.
He says OPEC’s (Organization of the Petroleum Exporting Countries) decision on Sunday to reduce daily oil output makes a recession more likely, as well as interest rate hikes from the Federal Reserve to draw down inflation.
“We had our morning call this morning and our [Bloomberg] economist Anna Wong said, Yeah, their base case is for that recession to kick in Q3. Starting to move it a little forward now. OPEC is helping that. Fed tightening is helping that. So all assets have to go down. That means Bitcoin too. It’s the fastest horse in the race. So I’m overall, certainly relatively bullish.
But if I expect the stock market still to drop a third from here, I got to expect that weakness and that’s still my base case. And crude oil now is kind of accelerating that issue. OPEC is just admitting that they’re seeing the global demand problem kicking in and they’re responding as a rational cartel would do within the economic rationality.”
Bitcoin is trading for $28,071 at time of writing.
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