The cryptocurrency market “may be experiencing their first true recession,” according to a commodity specialist
According to a Twitter tweet from McGlone on February 5, he predicted that similar turning points like the one that gave birth to Bitcoin (BTC) might be anticipated now since digital assets were experiencing their first macroeconomic recession.
He claims that: There is a serious possibility that the cryptocurrency market is entering its first recession, which would lead to falling asset values and more volatility. Bitcoin was born out of the last major US economic contraction, the financial crisis, and the potential impending economic reset that might record comparable milestones.
The commodities expert compared crypto’s and stocks’ past performance and said, “a key question is how much price pain will there be before longer-term gains resume,” while also providing a chart showing the Nasdaq 100 at parity with its 200-week moving average (MA), which he called “relatively lofty based on the history of US recessions.”
Chart of S&P 500 MAs vs. Bitcoin MAs over time. According to Mike McGlone To this end, McGlone emphasized the following:
“The index hit rock bottom in 2022, some 70% below this mean, and again in 2009, some 40% below this mean. If the risk-asset tide continues to retreat, we do not anticipate the cryptocurrency market to be immune. The Bloomberg Galaxy Crypto Index seems ready to continue topping most market indices in the very improbable event of a gentle landing.”
According to a January 31st story by Finbold, a Bloomberg expert discussed his predictions for the future of cryptocurrency, saying that although he is not currently positive on digital assets, the flagship decentralized finance (DeFi) coin might reach six figures in the next couple of years.
At the same time, best-selling author of the personal finance book “Rich Dad Poor Dad,” Robert Kiyosaki, warned of a difficult landing, saying that “bad news, bankruptcy, unemployment, [and] homelessness” were on the rise, but that there were “bargains everywhere, gold, silver, Bitcoin priceless.”
If you’re an investor thinking about taking advantage of cryptocurrency’s cheap pricing during a recession, it’s important to do your research using Finbold’s guidance so you can make an informed decision.
Also Read: Why a pro-Ripple attorney believes XRP cannot be considered a security, even if it was sold as one