Former Barclays CEO: US recession will lower crypto prices

A market analysis conducted by John Glover, the former CEO of Barclays bank and current Chief Investment Officer at cryptocurrency firm Ledn, anticipates an upcoming recession in the United States (US) that is expected to affect the price of high-risk assets, including crypto, with a downward trend.

See below for full details.

Summary

• The expected impact on crypto prices due to the US recession, Glover’s words
• Focus on the price trend of BCS stock

The expected impact on crypto prices due to the US recession, Glover’s words

As anticipated, John Glover recently presented a market analysis predicting an impending recession in the United States, which will have a negative impact on high-risk assets, including cryptocurrencies.

Glover, specifically, argues that the current vibrancy in equity markets is maintained by the expectation of high rates, but he predicts that consumer spending will decline, causing a reversal.

Hence, in this context, he predicts that all risky assets will see a decrease in their prices. Specifically, the former CEO of Barclays stated the following:

“The equity markets remain surprisingly buoyant given that bond yields continue to indicate expectations that rates will remain high well into the future. This is keeping risk assets, including crypto prices, well supported for the time being.

My expectation is that western economy central banks will continue to talk about high inflation and potential rates hikes until they see consumer spending start to wane.

My view is that we are likely to see the US move into a recession in the coming quarters as household balance sheets begin to grapple with higher financing costs. As this develops I expect all risk asset prices to begin to come lower.”

We note that John Glover offers an interesting perspective on financial markets and the possible impact of an impending recession in the United States.

Indeed, his remarks highlight the importance of closely monitoring economic and financial developments to make informed investment decisions.

Focus on the price trend of BCS stock

Barclays PLC’s BCS share price experienced a 6.01% decline in August 2023, hitting a two-month low. However, buyers of Barclays shares resisted by defending support at $7.20, recording a slight recovery at the close of the month.

In mid-July 2023, bullish BCS shares broke through the upper range with significant volume, generating interest among long-term investors. Subsequently, the BCS share price rose 7% in just two weeks, reaching a swing of $8.63.

Barclays PLC (NYSE: BCS) announced its quarterly results on 27 July 2023, exceeding analysts’ estimates with a positive EPS of 0.442.

However, despite this success, investors reacted negatively, causing an 8.84% drop in the share price after the results announcement.

Hence, the price lost bullish momentum and experienced a short-term correction, with prices testing the lower consolidation band. Fortunately, buyers intervened at $7.20, pushing prices toward the EMA.

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