Cryptocurrency assets have been performing better than other investments in markets this year, but this could soon change according to Bloomberg Intelligence's senior macro strategist Mike McGlone. Rising deflationary risks are a major cause for worry in the case of Bitcoin (BTC) and Ethereum (ETH) - the two leading revolutionary technologies and assets that are traded 24/7.

McGlone pointed out that the trend in crypto assets so far has been along with movements in stocks and bonds, but that the effects of an economic recession caused by Federal Reserve tightening can bring cryptocurrency prices down. He warns that, should the stock market behave the same way as banks recently, Bitcoin and Ethereum face a dire risk of decline.

Analogously to the situation after the 2008 financial crisis from which Bitcoin was born, it appears BTC and ETH may hit a roadblock, experiencing resistance at the major levels of $30,000 and $2,000 respectively. Despite this, McGlone's overall outlook for the top cryptos is bullish in the long term.

Having said this, McGlone's sober analysis of the situation calls on investors to exercise caution: Cryptocurrencies are inherently a high risk investment and the future of Bitcoin and Ethereum is heavily reliant on the direction of the wider stock market. It is for such uncertainties that investors need to be wary of and have an unwavering understanding of the economic climate. With no clear signals of what could happen soon, the near future of cryptocurrency still remains a gamble.



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