Bloomberg experts points that Bitcoin and Ethereum might see a significant drop as the United States enters a recession

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By Degen Lipsa

Bitcoin (BTC) and Ethereum (ETH) may face resistance at critical round number levels of $30,000 and $2,000, respectively, as the Federal Reserve tightens into a recession that might harm all risk assets as per the famous Bloomberg strategist.

Since 2020, Bitcoin and Ethereum have held a critical position, with defined reducing supply and low but increasing acceptance presenting a compelling case for long-term bullishness.

Bloomberg senior macro strategist Mike McGlone. Image courtesy :siamblockchain

Bloomberg senior commodity strategist Mike McGlone noted on April 21 that the yield curve’s highest probability since 1982 indicates a growing consensus that the worst of a US recession is passed. According to McGlone, this could result in significant downside concerns.

Mike McGlone Identifies Key Pivot Points for Bitcoin and Ethereum

Bitcoin and Ethereum’s future is inextricably linked to technology breakthroughs and increased acceptance. Many experts believe that as more firms and individuals recognise the benefits of decentralised financial systems, these cryptocurrencies will continue to gain popular appeal.

Since the beginning of the year, Bitcoin has risen by nearly 70%, while Ethereum has risen by slightly more than 60%. Interestingly, a recent historical trend has surfaced as the value of Bitcoin has returned to 15 ETH after a six-year hiatus.

Despite these digital assets’ excellent performance and surpassing important price thresholds of $30,000 and $2,000 in April, both have witnessed major pullbacks in the previous week. Bitcoin is currently trading at $28,077, down 1.88% on the day and 8.91% over the previous week. Meanwhile, the second-largest asset by market capitalization, Ethereum, is currently trading at $1,908, down 1.75% in the past 24 hours and 9.86% in the last week.

While Bitcoin and Ethereum have experienced recent pullbacks, their overall upward trend and potential for long-term development remain. Investors should be wary of potential downside risks, especially given current market conditions.

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