The biggest digital currency by market capitalization, Bitcoin (BTC), looks to be experiencing its first clearly defined recession in the US. Bitcoin may be experiencing its first recognised recession in the US, according to Mike McGlone, Senior Macro Strategist at Bloomberg Intelligence.
McGlone’s short-term position on Bitcoin
The leading market expert reminded that the emergence of digital money followed the global financial crisis of 2008. He pointed out that the current state of affairs appears to be pointing negatively towards the end of the second quarter, which concludes this month. According to Bloomberg Economics, Bitcoin might be the underdog over gold in the second half of the year due to a “ugly” outlook.
The study demonstrates that gold may shine in the event of a full-fledged recession as it has historically done, a development that, if it occurs, may not favour BTC owing to its status as a risk asset.
Since there is so much ambiguity around the asset, it may be challenging to anticipate the precise performance of the digital currency. However, it is important to note that since the year’s beginning, Bitcoin has managed to fend off some of the market’s unfavourable mood.
Despite the fact that Bitcoin is presently trading below the $27,000 barrier level, many investors are still positive on the cryptocurrency. The long-term price objective of $1 million that famous investor Cathie Wood has set for the coin contributes to this confidence in its future.
Favorable upsides
Bitcoin has never been charged as a securities since the US SEC began taking action against cryptocurrencies. This is good news for the digital currency since the regulatory obstacles it must overcome are external and manageable.
A 30% tax on U.S. mining that was going to be included in the debt ceiling deal was also avoided by Bitcoin. Overall, there are still positive regulatory outcomes that can help Bitcoin continue to thrive.
