Marc Chandler who is the managing director of Bannockburn Global (a capital markets firm) has stated that digital assets investors should not be concerned about a prospective Bitcoin crackdown in Western Europe or the United States.
Chandler told Bloomberg Technology that China’s continued crackdown on Bitcoin is the country’s playbook, which has been in place for years.
However, he noted that, in general, investors should expect some type of cryptocurrency regulation.
“I don’t think the US or Western Europe will restrict crypto as much as some people worry in order to safeguard their monopoly. Rather, it should be regulated to ensure that it is not being used for illegal purposes. But, aside from American regulation, I believe there will be another hurdle to overcome,” Chandler added.
His words come after China tightened its grip on Bitcoin, shutting down nearly 90% of mining operations. Authorities have also announced a new crackdown on cryptocurrency trading. The move caused a huge drop in Bitcoin’s price, but the asset is now on the mend.
He observed that while Bitcoin is currently regarded as a store of value, recent price changes indicate that the asset has not lived up to expectations. Despite the regulatory issues, according to Chandler, Bitcoin should have maintained its surge under growing inflation.
Notably, proponents of Bitcoin believe it is a hedge against inflation, despite its expanding popularity.
The Bitcoin investment arena is not suitable for the average person
Chandler has raised concerns about the Bitcoin investing industry, claiming that it is dominated by institutional investors. Although Chandler feels that Bitcoin is not suitable for typical investors, he acknowledges that the asset is becoming more popular as a portfolio diversifier.
Chandler believes that Bitcoin has no inherent worth and that its price will continue to rise. Psychological aspects, he said, would be crucial in the asset’s future.
If Bitcoin trades around $27,000, he believes that holders will be forced to sell. By press time, Bitcoin had recovered, trading at $35,052, up nearly 5% in the previous 24 hours.