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.
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