- Bitcoin (BTC) surged above $28,000 on Monday, but amidst the excitement of this milestone, concerns have cast a shadow over the crypto market.
- McGlone’s analysis indicates that cryptocurrencies are grappling with the looming shadow of an upcoming recession, and the weakness observed in the third quarter may be a harbinger of future troubles.
- Among these concerns, popular trader and analyst Michaël van de Poppe provides a glimmer of hope for crypto investors. He believes that October and the entire fourth quarter of 2023 could bring renewed optimism.
It is wondered whether there will be a recession in the Bitcoin market after the weakness seen in the 3rd quarter: Commodity Strategist explained!
Possible Recession in the Bitcoin Market!
Bitcoin (BTC) rose above $28,000 on Monday, but amidst the excitement of this milestone, concerns have cast a shadow over the crypto market. Commodity Strategist Mike McGlone from Bloomberg highlighted a worrying trend darkening the digital asset world.
McGlone’s analysis indicates that cryptocurrencies are grappling with the looming shadow of an upcoming recession, and the weakness observed in the third quarter may be a harbinger of future troubles. His observations clearly indicate that the crypto space is currently under the shadow of a recession.
As the third quarter of 2023 came to a close, the crypto space exhibited notable weakness, leading many to wonder whether it was just a temporary rebound on the road to recovery or a foreboding sign of an impending recession. According to McGlone, the prevailing sentiment among analysts leans toward the latter possibility. McGlone stated:
“The crypto weakness in the third quarter could be either a rebound bounce or a trend toward a recession. Since almost all risk assets have moved higher into 2023, our bias is toward the latter.”
This view is based on the performance of various risk assets throughout the year. While gains were seen in many investment types in 2023, the current quarter brought a decline that raised concerns about the broader economic outlook.
Fourth Quarter Despair: ETFs and Halving
Amid these concerns, popular trader and analyst Michaël van de Poppe provides a glimmer of hope for crypto investors. He believes that October and the entire fourth quarter of 2023 could bring renewed optimism. The primary factors contributing to this optimism include the potential approval of spot Bitcoin exchange-traded funds (ETFs) and the anticipated pre-halving price increase. Poppe stated:
“Welcome to Uptober. Welcome to the fourth quarter, potentially supported by ETF approvals and a pre-halving rally.”
If these anticipated events unfold, Poppe suggests that Bitcoin could reach up to $40,000 in the fourth quarter. This prediction implies a massive surge of more than 40% from the current price.
As Bitcoin continues its journey within the volatile cryptocurrency market, the differing views of analysts like McGlone and Poppe underscore the uncertainty and complexity of the current economic landscape. Investors and enthusiasts will closely watch to see if the digital asset can resist economic challenges and deliver an impressive comeback.
