As the cryptocurrency market begins to consolidate its bullish advances since the year’s turn, senior commodity strategist at Bloomberg Mike McGlone has shared his analysis in which he suggests that cryptocurrencies could be “facing their first real recession.”

Specifically, McGlone said that digital assets were going through their first macroeconomic contraction, the last of which earlier gave rise to Bitcoin (BTC), which is why similar turning points could be expected this time around, according to the assessment he posted on Twitter on February 5.

According to him:

“Cryptos may be facing their first real recession, which typically means lower asset prices and higher volatility. The last significant US economic contraction, the financial crisis, led to the birth of Bitcoin, and the possible coming economic reset may mark similar milestones.”

(By Ana Nicenko)