Bloomberg analysts warn of Bitcoin industry collapse if the US defaults

Senior Bloomberg Intelligence strategist Mike McGlone says that both stock and digital markets face a collapse if the United States defaults.

During the Wolf of All Streets podcast, he said he is bearish on cryptocurrencies, but is optimistic about gold amid talks to raise the US debt ceiling.

‘This is exactly what happened in 2011 — [the U.S. authorities] heavily crashed the stock market,’ the expert explained.

If such a move is made, risk assets would initially rally, but then face the same crash as the traditional sector, McGlone added. He noted that Bitcoin would rally the strongest of all.

In his view, the most likely market reaction to a possible US debt default would be an increase in the debt ceiling.

Earlier, Bloomberg strategist expressed concern about meme tokens Dogecoin and Shiba Inu, calling them ‘naturally speculative assets’. He believes the community should remove such cryptocurrencies from the markets as quickly as possible.

In May, the issuer of USDC, Circle revised its stake in Treasury bills due to the risk of a US default.