Macro Strategist earlier this week Mike McGlone warned investors that cryptos that outperform other assets could plummet if deflation sets in.

In a tweet on Wednesday, McGlone said he remains cautious on crypto assets amid a deteriorating economic climate.

The strategist wrote that “a deflationary collapse may be gaining traction, as evidenced by falling commodities and bank deposits.”

He added that crypto assets could face downside risks if the broad stock market falls.

“Born out of the 2008 financial crisis, Bitcoin is facing its first U.S. recession, and if the broader stock market follows the banks, cryptos are likely to ebb with the tide,” McGlone wrote.

Also read: Here’s why this analyst says a $10 trillion market cap for Bitcoin can happen

“The emerging 24/7 traded leading indicators, revolutionary technologies and assets – Bitcoin BTC/USD And ether ETH/USD – could face resistance wall at key round figures of $30K and $2K,” he added.

At the time of writing, Bitcoin was trading at $28,611, down three percent over the past seven days.

Now Chief Strategy Officer of CoinShares Meltem Demirors said earlier this week that the US banking crisis was the main cause of Bitcoin’s price action over the past few months.

in a (n interview Speaking to Bloomberg Television, Demirors said there were two catalysts that gave Bitcoin a boost. First, investors are regaining risk appetite, and second, they anticipate next year’s halving in April, when miners’ rewards will be halved, she said.

Now read: Analyst who predicted a crypto crash in May 2021 now says Bitcoin will rally to that price by 2024

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