Benzinga - Commodity strategist Mike McGlone has analyzed the market and suggested that crypto could be “facing their first real recession.”
What Happened: In a recent assessment posted on Twitter, McGlone said that the digital asset market was undergoing its first macroeconomic contraction since the introduction of Bitcoin (CRYPTO: BTC).
As the last contraction contributed to Bitcoin's rise, McGlone believes similar turning points could be expected this time around.
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“Cryptos may be facing their first real recession, which typically means lower asset prices and higher volatility. The last significant US economic contraction, the financial crisis, led to the birth of Bitcoin, and the possible coming economic reset may mark similar milestones,” McGlone tweeted on Monday.
Comparing the historical performance of crypto and the stock market, McGlone provided insight on how much price pain investors should be expecting before longer-term gains resume.
It showcases the Nasdaq 100 at parity with its 200-week moving average (MA), which accoridng to the analyst is "relatively lofty based on the history of US recessions."
Price Action: At the time of writing, BTC was trading at $22,912.92 up 0.0% in the last 24 hours, according to Benzinga Pro.
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