Dogecoin and altcoins critiqued by Bloomberg analyst

Beincrypto
Updated
Tony
coverImg
Source: DepositPhotos

Michael McGlone, a chief commodity strategist at Bloomberg Intelligence, has noted increased risks in the crypto market. In his recent statement, McGlone noted that there were “2.4 million so-called cryptocurrencies” in the market, referring to them as “Bitcoin wannabes.”


McGlone’s analysis mentioned Dogecoin, a $68 billion market capitalization cryptocurrency that he says is one of those that he believes do not have Bitcoin’s fundamentals. He compared its expansion to the dot-com bubble, implying that most of them may collapse the same way over time.

“Dogecoin is one of the 2.4 million so-called #cryptocurrencies that future generations may look back upon akin to the dot-com bubble.”

McGlone



The “unlimited supply cryptos” uncertain future


McGlone’s critique also targeted what he labeled “unlimited supply cryptos,” which includes Dogecoin and other altcoins. McGlone highlighted that this is a significant disadvantage compared to Bitcoin, with only a 21 million supply cap. He pointed out that some of these currencies may not be in a position to challenge Bitcoin, given that the latter is a store of value asset.


The strategist’s analogy with the dot-com bubble only strengthens his concerns. In the late 1990s, companies based on the Internet emerged, causing an overhyped market that crashed. According to McGlone, the coming generations may look at the over 200 meme coins and many smaller altcoins in the same way.


Also, Dogecoin’s market capitalization recently hit $55 billion, which is the same as the valuation of Bank of New York Mellon, one of the oldest banks in the United States. McGlone added that BNY Mellon, which is expected to generate $19.1 billion in revenue in 2025, has real earnings. On the other hand, Dogecoin, which is a speculative asset, has no earnings.


Peter Brandt, a renowned financial trader, echoed these concerns. In a recent post, he stated that speculative digital assets are highly dangerous for investors. According to Brandt, most investors employ high levels of leverage to seek short-term profits in altcoins and meme coins. He warned that speculative digital assets pose considerable risks to investors.


He stated that in case of a market correction, Bitcoin may lose half of its value, and altcoins may lose up to 90% of their value. According to him, meme coins could be completely wiped out of the market as they have no real-world use and are only hyped up to gain value.


As of this writing, Bitcoin is trading at $102,000, and Dogecoin is trading at $0.38.The overall market cap has risen by 2%, currently at $3.66 Trillion.



* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

goTop
quote
Do you find this article useful?
Related Articles
placeholder
Bitcoin Price Bleeds As Galaxy Digital Unleashes $1.5 Billion Sell-OffBitcoin slipped from an intraday peak above $119,000 late Thursday to trade as low as $115,800 in European morning hours.
Author  NewsBTC
Jul 25, Fri
Bitcoin slipped from an intraday peak above $119,000 late Thursday to trade as low as $115,800 in European morning hours.
placeholder
Crypto market bulls bleed over $1B this week as record high US M2 supply, Trump’s rate cut pushThe total cryptocurrency market capitalization trades in the red by nearly 3% so far this week as bullish momentum fades.
Author  FXStreet
Jul 25, Fri
The total cryptocurrency market capitalization trades in the red by nearly 3% so far this week as bullish momentum fades.
placeholder
Ethereum Price Forecast: BitMine holdings cross 560K ETH as ETHA hit $10 billion inflows on 1st anniversaryEthereum (ETH) moved toward the $3,780 resistance on Thursday.
Author  FXStreet
Jul 25, Fri
Ethereum (ETH) moved toward the $3,780 resistance on Thursday.
placeholder
Bitcoin Flow Pulse Breaks From 2017, 2021 Patterns – What It Means For The RallyAs Bitcoin (BTC) continues to trade near its all-time high (ATH) of $123,218, concerns over rising exchange deposits are mounting.
Author  NewsBTC
Jul 24, Thu
As Bitcoin (BTC) continues to trade near its all-time high (ATH) of $123,218, concerns over rising exchange deposits are mounting.
placeholder
Bitcoin Must Defend This Key Support For $180,000 Year-End Target, Analyst SaysAs Bitcoin (BTC) consolidates near the $119,000 mark following a new all-time high (ATH) above $123,000 last week.
Author  NewsBTC
Jul 23, Wed
As Bitcoin (BTC) consolidates near the $119,000 mark following a new all-time high (ATH) above $123,000 last week.