Markus Thielen, head of research at 10x Research, cautions that it may be premature for Bitcoin investors to be optimistic about long-term price impacts related to potential recessions. In his report, he highlights that widening credit spreads indicate deeper recessionary concerns in the economy, with expectations for a bullish market being expressed too soon. While the long-term outlook for Bitcoin could improve due to monetary easing likely following Federal Reserve rate cuts, short-term pressures remain. Thielen points out that Bitcoin often experiences initial sell-offs during economic downturns, particularly if major factors like a devaluation from China or Fed cuts occur. As of now, Bitcoin trades at $80,620, amid concerns about the weakening US dollar, represented by a 2.92% drop in the US Dollar Index over the past few days. Thielen’s analysis suggests that while future opportunities for Bitcoin exist, immediate challenges must be navigated carefully, particularly in relation to economic indicators.

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