Bloomberg Intelligence Senior Macro Strategist Mike McGlone made evaluations about the outlook for Bitcoin in a recent interview. Bitcoin’s price is hovering around $30,000 and experienced a spike shortly after BlackRock’s application for the Bitcoin Spot ETF. McGlone warned that this upward momentum may be temporary and said:
“The main reason for this rise recently is BlackRock’s ETF application. Most people think that means it will be approved in the US. But this is still an expression of probability. It may not happen this year.“
McGlone emphasized Bitcoin’s commitment to the stock market:
“Bitcoin still trades as a risk asset like the stock market.”
Noting that Bitcoin’s performance is closely tied to market liquidity, McGlone argues that for Bitcoin to exhibit strength independent of the stock market, it must survive the upcoming recession and differentiate from traditional stocks.
The strategist underlines that Bitcoin needs to prove itself in order to outperform other assets. He states that around the current price level of $30,000, Bitcoin looks very risky, especially if the global economy goes into recession, most of the risky assets will suffer.
McGlone acknowledges that there is pressure on the industry, citing the likes of Coinbase and Binance. However, he believes such regulatory action is necessary to eliminate the excessive speculation that often accompanies revolutionary technologies. Comparing the current situation with historical examples of speculation in other industries, he points out that there are thousands of cryptocurrencies, but only a handful with significant technological impact such as Bitcoin and Ethereum.