{"id":17425,"date":"2023-02-09T00:57:59","date_gmt":"2023-02-09T00:57:59","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/commodity-strategist-mike-mcglone-says-cryptocurrencies-may-be-facing-their-first-real-recession-markets-and-prices-bitcoin-news\/"},"modified":"2023-02-09T00:57:59","modified_gmt":"2023-02-09T00:57:59","slug":"commodity-strategist-mike-mcglone-says-cryptocurrencies-may-be-facing-their-first-real-recession-markets-and-prices-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/commodity-strategist-mike-mcglone-says-cryptocurrencies-may-be-facing-their-first-real-recession-markets-and-prices-bitcoin-news\/","title":{"rendered":"Commodity Strategist Mike McGlone Says Cryptocurrencies May Be Facing Their First Real Recession \u2013 Markets and Prices Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Bloomberg Intelligence\u2019s senior commodity strategist Mike McGlone has warned that \u201ccryptos may be facing their first real recession.\u201d The Federal Reserve tightening despite the risk of a recession \u201ccould be a primary headwind for most risk assets, notably cryptos,\u201d he added.<\/strong><\/p>\n

\u2018Cryptos May Be Facing Their First Real Recession\u2019<\/h2>\n

Bloomberg Intelligence (BI), the research arm of Bloomberg, published its February 2023 crypto outlook last week. BI\u2019s senior commodity strategist Mike McGlone tweeted Sunday:<\/p>\n

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Cryptos may be facing their first real recession, which typically means lower asset prices and higher volatility.<\/p>\n<\/blockquote>\n

\u201cThe last significant U.S. economic contraction, the financial crisis, led to the birth of bitcoin, and the possible coming economic reset may mark similar milestones,\u201d he added.<\/p>\n

Regarding \u201chow much price pain will be before longer-term gains resume,\u201d the report details, \u201cOur graphic shows the Nasdaq 100 at parity with [bitcoin\u2019s] 200-week moving average, relatively lofty based on the history of U.S. recessions,\u201d elaborating:<\/p>\n

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We don\u2019t expect the crypto market to be spared if the risk asset tide continues to recede.<\/p>\n<\/blockquote>\n

Fed Tightening \u2018Could Be a Primary Headwind\u2019 for Cryptocurrencies<\/h2>\n

\u201cCentral bank actions have delayed impacts, and most risk assets fall in recessions. That could spell trouble for cryptos, which are among the riskiest,\u201d Bloomberg Intelligence noted. \u201cThe crypto low may have come with FTX\u2019s demise, but a scenario more akin to the collapse of Lehman Brothers is also possible, where the trough came much lower about 6 months later.\u201d<\/p>\n

The report continues:<\/p>\n

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Fed tightening despite the risk of recession could be a primary headwind for most risk assets, notably cryptos. Buy-and-hold strategies may benefit at the expense of the more speculative and leveraged, subject to rising volatility typical in bear markets.<\/p>\n<\/blockquote>\n

\u201cThe pandemic was a major disruption that may shape markets for years. It sparked the greatest fiscal and monetary pump in history, and that\u2019s still in the process of dumping,\u201d the report adds. \u201cTypically, risk assets bottom well after the Fed first eases, which remains quite distant at the start of February.\u201d<\/p>\n

Do you agree with Mike McGlone and Bloomberg Intelligence? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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