Through his Twitter account, McGlone indicated that the current Bitcoin rally could receive a boost in case U.S. regulators target cryptocurrencies. He, however, noted that the cryptocurrency market has expectations that the regulators will choose the right thing.
“What, Us Worry? Crypto Market Expects the U.S. to Do Right Thing – Any U.S. move to regulate crypto assets is likely to support renewed upward trajectories for Bitcoin and Ethereum,” said McGlone.
His suggestions come after cryptocurrency regulation became the center of attention at the U.S. senate. On Monday, the Senate blocked an amendment in the bipartisan infrastructure bill to limit a proposal to raise federal regulation of cryptocurrencies.
The last-minute amendment brought up new regulations that compel businesses to report cryptocurrency transactions over $10,000 to the IRS.
Bitcoin on a short-term rally
In recent days, Bitcoin has built momentum, trading at $45 473 by press time with gains of 17% in the last seven days. After entering into a bull run for a better part of the year that culminated in an all-time high of $64,800, Bitcoin price corrected, losing by almost 50%. However, Bitcoin has embarked on the short-term ally despite the regulatory question lingering.
The plunge was partly due to regulatory crackdown in various jurisdictions led by China. Previously, McGlone had indicated that the regulatory crackdown in China and efforts from the U.S. government are contributing to Bitcoin maturation.
Therefore, against expectations, regulatory concerns will not have a negative impact on the asset’s price movement.
“The increasing dichotomy between China pushing back and the U.S. adding clearer rules may mark part of a new and different kind of cold war. Countries restricting capital flows may fall behind in the digitalization process of money and finance,” said McGlone.
McGlone has presented bullish views on Bitcoin, noting that he does not foresee anything stopping the asset’s appreciation.
According to the strategist, the recent price correction was short-term and building the base for potential long-term gains. He has projected that Bitcoin will trade at $100,000 in the coming years.