Bloomberg Intelligence Senior Strategist Mike McGlone has raised concerns about the risks associated with investing in meme cryptocurrencies DOGE and SHIB.
He believes that during the upcoming economic storm, Bitcoin will continue to overshadow other digital assets.
However, for DOGE and SHIB, their prospects are not so bright, and he suggests removing them from the market.
McGlone described these cryptocurrencies as purely speculative assets, and in the face of tightening policies of the US Federal Reserve System (Fed) and the impending recession, urged investors to get rid of them as soon as possible.
He went on to compare these cryptocurrencies to the financial crisis of 1929 and the dot-com bubble in 2000, explaining that a strong correction in the stock market will put pressure even on Bitcoin, and DOGE and SHIB will not be able to withstand these difficult conditions.
Therefore, eliminating these two cryptocurrencies could benefit the crypto industry by creating conditions for a more stable operation of the market.
McGlone emphasized the need to get rid of excess liquidity and speculative assets with high levels of risk, as DOGE and SHIB are nothing but real speculation machines.
He acknowledged that there are hundreds of cryptocurrencies, but only Bitcoin will always remain in the first place.
Earlier, McGlone expressed his confidence in the future of the two top cryptocurrencies – Bitcoin and Ether – which were able to stay afloat even during a serious fall in the cryptocurrency market last year.