Once again, the crypto market is going through a period of turbulence. Some investors are even on high alert following the publication of an alarming report from 10x Research. It highlights a potential drop in the price of Bitcoin (BTC), exacerbated by economic uncertainty in the United States. According to 10x Research, this sharp drop in Bitcoin will affect the entire crypto market.
Bitcoin Faces Impending Economic Storm: Could It Drop Below $50,000?
L'ISM Manufacturing Index is a key barometer of the U.S. economic health. Right now, it’s showing a worrying slowdown. According to the 10x Research report, this situation could have disastrous consequences for Bitcoin as well as all digital assets.
In this sense, 10x Research founder Markus Thielen warns:
“It may be premature for cryptocurrency traders to open new leveraged long positions.”
Concretely, 10x Research report revealed a worrying historical correlation between the ISM index and Bitcoin. According to him, Bitcoin has historically experienced strong corrections when the ISM peaked. This analysis therefore suggests a potential fall of Bitcoin below the symbolic $50,000 mark.
That's not all! The S&P 500 could also suffer a 20% correction. Enough to amplify Downward pressure on the digital asset market.
Bitcoin Dominance, a Misleading Indicator?
Despite this gloomy outlook, Bitcoin (BTC) dominance hit a new yearly high of 58% on August 5. IG Markets analyst Tony Sycamore, however, warns that this surge in dominance amid a price crash is a reminder that Crypto sits at the sharp end of the risk asset spectrumThis situation could increase volatility and risks for investors.
Faced with these alarming forecasts, crypto traders and investors must remain vigilant. The evolution of the American economy and the decisions of the FED are crucial for the future of Bitcoin and the crypto market in the coming weeks.
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