Bitcoin (BTC) and the broader cryptocurrency market has a strong runup since the beginning of 2023 gaining by more than 40% so far. As of press time, Bitcoin (BTC) is trading at a price of $22,789 with a market cap of $439 billion.
Mike McGlone, the senior macro strategist at Bloomberg Intelligence said that cryptos could be facing their first real recession that could lead to lower asset prices and higher volatility.
It was during the last US financial session of 2008 that led to the birth of Bitcoin. While the very premise of Bitcoin’s existence is to serve as an alternative to the fiat system, it still remains a highly volatile asset class. As Bitcoin is likely to test its first major financial recession this year, the question is how much pain is still in the making before resuming the long-term gains.
For this, Mike McGlone compares BTC to the Nasdaq 100 Index since both of them have in close correlation in the past. Bloomberg Intelligence compares Nasdaq 100 with its 200-week moving average and its performance over the last two recessions.
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