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Expert predicts major pullback for Bitcoin and Ethereum as US recession looms

Expert predicts major pullback for Bitcoin and Ethereum as US recession looms

Bitcoin (BTC) and Ethereum (ETH) could be facing resistance at key round number levels of $30,000 and $2,000, with the potential for a stock market downturn with the Federal Reserve tightening into a recession that could affect all risk assets.

Bitcoin and Ethereum have had a pivotal status since 2020, with definable diminishing supply and low but increasing adoption making a strong case for long-term bullishness. 

On April 21, Bloomberg senior commodity strategist Mike McGlone stated that the yield curve’s highest probability since 1982 suggests a growing consensus that the worst of a US recession may be over. However, this could potentially lead to large pullback risks, according to McGlone.

McGlone tweeted: “Bitcoin and Ethereum — may be running into a wall of resistance at the key round number levels of $30,000 and $2,000. Our bias is bullish in the long term for the top cryptos, but an overwhelming force of the stock market going down with the Fed tightening into a recession has the potential to lower the tide for all risk assets, and Bitcoin and Ethereum are among the riskiest.”

Bitcoin and Ethereum are among high-risk assets. Source: Mike McGlone

Bitcoin and Ethereum

The future of Bitcoin and Ethereum is closely tied to technological advancements and increasing adoption. Many experts believe that these cryptocurrencies will continue to gain mainstream acceptance as more businesses and individuals recognize the benefits of decentralized financial systems.

Since the turn of the year, Bitcoin has experienced a notable increase of approximately 70%, while Ethereum has climbed just above 60%. Interestingly, a recent historical pattern has emerged as the value of Bitcoin has again reached 15 ETH after six years.

Despite the impressive performance of these digital assets and surpassing key price levels of $30,000 and $2,000 in April, both have experienced significant pullbacks in the last week. At present, Bitcoin is trading at $28,077, down 1.88% on the day and 8.91% over the previous week. Meanwhile, Ethereum, the second-largest asset by market cap, is currently trading at $1,908, down 1.75% in the last 24 hours and 9.86% in the last week.

While Bitcoin and Ethereum’s recent pullbacks may cause temporary concern, their overall upward trend and potential for long-term growth remain. Investors should remain vigilant of potential downside risks, especially in light of broader market conditions.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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