Bitcoin: Best Investment Choice in 2023?
An analyst from Bloomberg Intelligence considers Bitcoin an accurate choice for investors amid regulatory challenges and looming recession
Mike McGlone stated in a recent statement that Bitcoin may be the most accurate choice for investors who are looking for a profitable asset. The man also noted that the decentralized nature of this digital currency will protect it from US regulators, which seem to be increasingly attacking the cryptocurrency market. Despite the optimistic attitude towards BTC, the same analyst also expects a strong recession to come in the third quarter of this year. This, in turn, could negatively affect risky assets such as Bitcoin.
Bitcoin may be the best investment choice
The oldest digital currency has increased its value by about 70% since January 2023. Only in March this year its price increased by as much as 40%. Currently, one BTC coin costs over $28.1 thousand. Experts are optimistic about the trajectory that Bitcoin may take in both the short and medium term.
According to Mike McGlone, the largest of the cryptocurrencies may continue to grow in the near future. In his opinion, it cannot be harmed even by the intensive efforts of American regulators, which are hitting the digital currency industry. All this due to the decentralized nature of BTC.
Some time ago, the independent US agency that regulates the futures market and protects it against abuses - the Commodity Futures Trading Commission (CFTC) recognized BTC as a commodity, not a security.
In the opinion of a popular analyst from Bloomberg, the leading cryptocurrency is untouchable from the current point of view. Nobody can destroy it.
Possible recession and weakening on risky assets
Although Mike McGlone remains highly optimistic about Bitcoin and other cryptocurrencies, he expects a possible correction in the BTC chart in the event of a US recession. It is worth adding that the recession phenomenon is perceived as bearish, especially for risky assets, to which virtual currencies are commonly classified.
According to the aforementioned analyst, the stock market may lose ⅓ of its value in the near future in the worst-case scenario. The man also revealed that Bloomberg economist Anna Wong said the recession could start in the third quarter of this year. In the opinion of Mike McGlone, the recession may be delayed due to the decision of the Organization of the Petroleum Exporting Countries to reduce daily oil production, as well as the likelihood of further interest rate hikes by the US Federal Reserve to lower inflation.
“Due to the current macroeconomic situation, all assets must lose value, and this applies to Bitcoin as well,” the Bloomberg Intelligence analyst noted.