Bloomberg: Bitcoin Industry Could Collapse if US Defaults on its Debt
Mike McGlone, senior strategist at Bloomberg Intelligence, believes stock and digital markets will collapse if the US defaults on its debt.
He has said during the Wolf of All Streets podcast that he is “bearish” on cryptocurrencies, but bullish on gold amid negotiations to raise US government debt limits.
The expert has explained:
“This is exactly what happened in 2011: [US authorities] caused a sharp fall in the stock market.”
If such a decision is taken, risk assets will initially increase, but then they will face the same collapse as the traditional sector, he has added, stressing Bitcoin will be the most damaged.
According to the expert, the market’s reaction to a possible default on US debt will most likely lead to an increase in its ceiling.
