Bloomberg analyst Mike McGlone shared his views on the outlook for Bitcoin and Ethereum, the two largest cryptocurrencies in the world by market cap.
In a tweet on Friday, McGlone said that Bitcoin and Ethereum could face a wall of resistance at key round figures such as $30,000 and $2,000 respectively.
McGlone explained that Bitcoin and Ethereum are long-term bullish assets due to leading indicators that are traded 24/7, revolutionary technologies and their identifiable declining supply and low and growing adoption.
However, he also warned that the decline of much of the stock market with the Fed tightening into a recession has the potential to negatively impact the trajectory for all risky assets, with Bitcoin and Ethereum among the riskiest assets.
McGlone added a chart showing the key position of $30,000 in Bitcoin and $2,000 in Ethereum since 2020.
He also noted that the growing consensus that the worst is over before the US recession could point to pullback risks for the biggest cryptocurrencies, as evidenced by the yield curve pointing to the highest probability since 1982.
*Not investment advice.