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While the leading cryptocurrency Bitcoin maintained the level of $ 28,000, a recession warning came to investors from Bloomberg senior commodity strategist Mike McGlone.
Although BTC rose above $ 28,000, the famous analyst said that the trend in the cryptocurrency market is worrying.
Stating that BTC and cryptocurrencies are at risk of stagnation at this point, McGlone touched upon the weakness of cryptocurrencies in the third quarter.
According to McGlone, this weakness could either be a sign that the recovery is temporary or a sign of an impending recession.
The analyst stated that the second option is more likely and said:
“Crypto weakness in Q3 could be a recovery wave or recession trend. Our bias is towards the latter option, as almost all risk assets rise in 2023 and fall in the third quarter.”
The analyst also referred to the bond crash in 1987, saying, “While US Treasury bond yields in 1987 reached their peak in the week before the crash, the peak in crude oil occurred in July 2008. Now we see similarities in Bitcoin.” said.
At this point, Mike McGlone warned investors by comparing the rise in Bitcoin to the peak before the collapse.
Positive Beta vs. Negative Liquidity – Cryptos Face Recession: #Crypto weakness in 3Q may be a recovery blip or a #recession leaning. Our bias is the latter, as almost all risk assets gained in 2023 and rolled over into the quarter. Most central banks are still tightening despite… pic.twitter.com/MaaZxhJdWL
— Mike McGlone (@mikemcglone11) October 2, 2023