Maxwell Williams 
According to Mike McGlone, Senior Market Strategist at Bloomberg, the crypto market could be entering its “first real recession,” which could lead to a technological breakthrough similar to Bitcoin‘s invention. Citing the 2007-2008 global financial crisis as an example of how a major economic contraction can spark innovation, McGlone warned that we must not rule out any potential milestones in this regard if another “real recession” erupts.
Bloomberg Strategist: There Could Be A Serious Plunge In The Crypto Market
McGlone, who has gained fame for his encouraging outlook on Bitcoin’s future, questions how far prices must fall before the market can enjoy another extended bull cycle. The note McGlone tweeted also remembered that the Nasdaq 100 Index – a stock index heavily reliant on technology and often correlated with Bitcoin – currently rests at 200-week moving average levels, which are “relatively lofty” compared to US recessions from history.
He proclaimed that the Nasdaq 100 had dropped to nearly 70% below its 200-week moving average in 2002, then further down to 40% in 2009. The press release suggested that crypto markets will not be immune if the overall market for high-risk assets continues downward. However, according to the report’s optimistic long-term view of things, even though a soft landing is improbable at this point, crypto indices still have better chances than most stock markets do.
The Chance of a Recession Is Too High to Be Ignored
Just three days after the publication of Bloomberg‘s Crypto Outlook for February, McGlone echoed its concerns with a tweet centered on the risk of an impending recession and what that would imply for crypto markets. In his report, he wrote grimly: “With the US yield curve exhibiting greater chances of a recession than ever since 1992 in our records, it seems inconceivable that indices will not maintain their downward trajectory from here.”
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