Commodity Strategist Mike McGlone has analyzed the market and suggested that crypto “may be facing its first real recession.”

What happened: In a recent review on TwitterMcGlone said the digital asset market experienced its first macroeconomic contraction since the inception of Bitcoin BTC/USD.

As the last contraction helped Bitcoin’s rise, McGlone believes that similar turning points can be expected this time.

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“Cryptos may be facing their first real recession, which usually means lower asset prices and higher volatility. The last significant U.S. economic crisis, the Financial Crisis, led to the birth of Bitcoin, and the possible upcoming economic reset could mark similar milestones,” McGlone tweeted Monday.

McGlone compared the historical performance of crypto and the stock market, providing an insight into how much price pain investors should expect before longer-term gains resurface.

It shows the Nasdaq 100 at par with its 200-week moving average (MA), which the analyst says is “relatively high based on history of US recessions.”

Price promotion: At the time of writing, Bitcoin traded at $22,912.92 in the last 24 hours, up 0.0%, according to Benzinga Pro.

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