AssetsFeb 14, 2023

Bitcoin faces the threat of interest rate hikes and recession, believes Mike McGlone

Bitcoin faces the threat of interest rate hikes and recession, believes Mike McGlone

A senior analyst at Bloomberg warns investors that the leading cryptocurrency still faces serious macroeconomic difficulties.

Although the value of Bitcoin rose more than 40% in January this year, Mike McGlone advises investors to be cautious in the first quarter of 2023. In his opinion, at that time, this cryptocurrency may encounter difficulties related to the "taming of inflation" by the US central bank. This expert also predicts that more regulations may soon appear in the industry, but in his opinion this is not a bad thing.

Bitcoin faces the threat of interest rate hikes and recession

Although many members of the digital currency community have started to make highly optimistic forecasts for the main currency, some analysts advise to be careful with BTC in the near future. Despite the strong January price recovery on the Bitcoin chart, there is still some possibility that this cryptocurrency may deepen the declines.

According to Mike McGlone, difficulties may come as early as the first quarter of this year. In his Twitter post, he linked these problems to the policies the Fed is currently pursuing.

Currently, the largest of the cryptocurrencies is valued above the $22,000 line for one coin. Over the last 24 hours, its price has increased by nearly 3%. It is now over 67% away from ATH.

Regulations are needed

In one of the latest interviews with Scott Melker of The Wolf of All Streets, an expert from Bloomberg offered other thoughts on the cryptocurrency market. In his opinion, there will be more regulation in this industry, which will not be a bad thing at all.

According to Mike McGlone, the events of 2022 clearly showed that more oversight is needed in the digital currency space. Many projects have exposed their imperfections during the crypto winter, but there is still a lot to do in this market.

In the opinion of a Bloomberg analyst, proper regulation would prevent people like Sam Bankman-Fried from running corporations, collecting money from investors and spending it on private investments and absurd whims.