On October 2, Mike McGlone, Commodity Strategist at Bloomberg, took to social media X (formerly known as Twitter) to express his concerns about the state of the crypto market. Despite Bitcoin’s (BTC) recent rise, McGlone highlighted a disturbing trend and raised the possibility of a cryptocurrency recession. Factors Behind Crypto Market’s Recession Risk McGlone pointed out the concept of “positive beta vs. negative liquidity” and its implications for the cryptocurrency market. Bloomberg’s senior Macro Strategist suggested that the weakness observed in the third quarter of 2023 could be either a temporary blip in the recovery or a sign of an impending recession. Related Reading: Optimism (OP) Climbs 6% A Day As Crypto Market Rebounds, What’s Next? According to McGlone, the latter scenario is more likely, given that most risk assets experienced gains in 2023 but have since rolled over into the new quarter. The strategist also drew attention to the actions of central banks worldwide, noting that many are tightening their monetary policies despite signs of contraction in the United States and Europe. Additionally, McGlone highlighted the ..
Support the originator by clicking the read the rest link below.
