Bloomberg Intelligence’s senior commodity strategist Mike McGlone is issuing a warning on the two largest meme coins by market cap amid approaching economic headwinds.
In a new Wolf of All Streets roundtable discussion, McGlone says that while he expects Bitcoin (BTC) to keep outperforming other crypto assets, Dogecoin (DOGE) and Shiba Inu (SHIB) are “pure speculation machines” that should be eliminated.
“The Federal Reserve is tightening, the economy’s going to recession… what are you supposed to do? Sell! My indication is just sell…
If I see a hurricane, I’m supposed to say it. But the thing is I fully expect Bitcoin to continue outperforming all cryptos.
But 22,000 cryptos and things like Dogecoin, and Shiba Inu… It shows the inflation in the system that needs to be purged.
That’s just indicative of what happened in almost every major pump and liquidity we’ve had in the past, up to the 1929 crash that ended in the 30s, up to what happened to 2000, the internet bubble.
You got to get rid of that excess of liquidity and risk assets and excess of speculation. And Dogecoin and Shiba Inu are just nothing but pure speculation machines… there are a hundred cryptos that matter and the number one is Bitcoin.”
McGlone further says that a severe stock market correction will negatively impact Bitcoin and to a greater extent, the speculative crypto assets. According to Bloomberg Intelligence’s senior commodity strategist, getting rid of the speculative digital assets would help the crypto industry earn legitimacy.
“When the stock market, the S&P 500 goes down with high velocity, which I think it will, everything’s correlated to one…
When that starts, Bitcoin will probably see pretty significant pressures. But we should see a lot more pressure in all the other cryptos, the ones that are just silly speculation.
And maybe flush them out eventually. We all know we got to get rid of that for this to be a legitimate space.”
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