- Commodity strategist says BTC is untouchable and can not be written off by regulators.
- Regulators like the SEC, Feds, and OPEC have increased their oversight functions.
- The lingering macroeconomic conditions would hinder the surge in the price of BTC.
The cryptocurrency ecosystem has seen several regulations in recent times. There have been many crackdowns on crypto firms and executives by the SEC and CFTC, and the list keeps getting longer.
Interestingly, these regulations have cut across several industries, including oil and gas. Significant among these regulations is the Federal Reserve’s move to tackle the growing inflation and the decision by OPEC to reduce daily oil output.
A crypto industry player recently opined that BTC has a special status irrespective of these regulations and will not be affected. What could have informed this?
Why BTC Seems Untouchable
On the 3rd of April, Mike McGlone, Bloomberg’s senior commodity strategist, identified the peculiar status of Bitcoin compared to other cryptocurrencies such as Ether (ETH). While responding to ongoing regulatory pressures in the crypto ecosystem, the analyst said Bitcoin is “untouchable.”
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McGlone is a BTC enthusiast— evident in his assertion— that the regulators can neither do anything to it nor kill it (Bitcoin). He said BTC is unprecedented and untouchable. While many would agree with his stance, it is intriguing as to whether regulators such as SEC want to kill BTC or touch it.
Besides being the most famous crypto token, BTC has no special status compared to other crypto tokens. Bitcoin enjoys every regulatory framework governing all other cryptocurrencies. Why?
In his response, McGlone says this “untouchable” feature is because Bitcoin is more decentralized. He added that all the frequent upgrades and tweaks to other crypto tokens, such as Ethereum, can not be done to BTC. This, therefore, makes it stand out from all regulations.
BTC has always enjoyed a higher echelon of acclaim by all and sundry. It is the first crypto to exist and has attained the highest market cap. It is – still – the most valuable crypto. But will always be? Or can BTC fall off? Let us look at it..
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Can BTC Fall Off?
Several investors, including Mike McGlone, are bullish on Bitcoin. However, they expect the BTC price value to decline with the endless crypto winter and looming recession.
You would recall that in January, McGlone warned that the anticipated BTC price surge might not occur. He said several macroeconomic conditions and pressures could hinder the surge. But, as predicted, his predictions came to pass.
Notably, we can categorize the interest rate hike by the Federal Reserve amidst the growing inflation as some of the predicted macroeconomic conditions.
Similarly, he noted that the latest decision by OPEC to cut down oil output and the Feds tightening policies have necessitated for all assets to go down— including Bitcoin.
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Therefore, as long as these economic issues persist, the price of BTC will either remain stagnant or fall off. He is, however, optimistic about a bullish market as soon as the regulatory bodies find lasting solutions to these macroeconomic conditions.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information but will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.