As Bitcoin (BTC) and altcoins continue to experience sudden pump and dump amid tariff tensions between the US and China, investors caught in the middle are wondering which way the market will go next.
At this point, while uncertainty continues in the crypto market as in global markets, 10X Research founder Markus Thielen warned about the decline, stating that the BTC price is facing pressure in the short term, although he expects an increase in the long term.
Markus Thielen said that it may be too early for Bitcoin investors to start being optimistic about the effects of a possible recession on Bitcoin's price and to be bullish on BTC.
According to the analyst, Bitcoin is facing pressure in the short term as recession fears grow.
“It's too early to expect bullish momentum in Bitcoin.”
Pointing to widening credit spreads as a sign of growing economic concerns, the analyst argued that a possible future recession and possible interest rate cuts by the Fed could benefit BTC in the long run.
However, Thielen said that according to historical data, Bitcoin has faced short-term sales before those periods arrive.
“Historically, when annual credit spreads start to widen, Bitcoin usually faces more downward pressure and takes longer to recover.
These periods present a longer-term opportunity for BTC. However, it may face headwinds before gaining upward momentum.”
Thielen lastly referred to the Chinese currency, the Yuan, and said, “Currency devaluations have historically been bearish for markets in the short term and bullish for markets in the long term.”
*This is not investment advice.
