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Bitcoin Is Facing Its First US Recession, Bloomberg's Market Expert Reveals

Fri, 06/09/2023 - 14:25
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Godfrey Benjamin
Created after 2008 financial crisis, Bitcoin is now about to face its first real recession in US
Bitcoin Is Facing Its First US Recession, Bloomberg's Market Expert Reveals
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Bitcoin (BTC), the largest digital currency by market capitalization, appears to be facing its first pronounced recession in the United states. According to the Senior Macro Strategist for Bloomberg Intelligence, Mike McGlone, Bitcoin may be facing its first official recession in the United States.

McGlone's short-term position on Bitcoin

The top market strategist recalled that the digital currency was born  after the 2008 financial crisis. He noted that as things stand, the cryptocurrency's performance implications appear to be leaning unfavorably toward the end of the second quarter, which ends this month.  Bloomberg Economics' view for an "ugly" second half of the year positions Bitcoin as a possible underdog compared to gold.

The analysis shows that gold may shine in the presence of a full-blown recession as it is historically wont to do, a move which, if it arises may not favor BTC due to its risk-asset status.

While predicting the exact performance of the digital currency appears difficult due to the broad uncertainty that surrounds the asset, it is worth noting that Bitcoin in itself has maintained some level of resistance to the negative sentiment surrounding the market since the start of the year.

Many investors are still bullish on Bitcoin even though the coin is currently trading below the $27,000 resistance point. Part of this trust in the coin's future is the $1 million price target that star investor Cathie Wood is maintaining in the cryptocurrency in the long term.

Bloomberg's Mike McGlone Identifies Key Pivot Points for Bitcoin and Ethereum: Details

Favorable upsides

Since the United States SEC has been cracking down on cryptocurrencies, Bitcoin has never once been indicted as a security. This a positive position for the digital currency as the regulatory hurdles it has to deal with are external and can easily be survived.

Bitcoin also survived the implementation of a 30% tax on mining in the U.S., which would have been part of the debt ceiling bill. In all, there are still favorable regulatory upsides that can support any potential growth by Bitcoin.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.