Originally published on: August 05, 2024
Recent insights from a comprehensive 10x Research report are painting a worrisome picture of the United States’ economic stability, potentially causing ripple effects in the cryptocurrency sphere. The report, shared exclusively with Cointelegraph, hints at a possible plunge in Bitcoin prices, potentially breaching the crucial $50,000 benchmark, sending warning signals across the crypto landscape.
Economic Health Concerns Amplified
The ISM Manufacturing Index, a longstanding gauge of economic well-being, is showing signs of distress, adding fuel to the fire. Markus Thielen, the brains behind 10x Research, advises caution among crypto traders, suggesting that now might not be the opportune moment to open leveraged long positions.
Historical Correlation Unveiled
The report’s findings shed light on a concerning disconnect observed between the ISM Index and BTC, hinting at a gloomy outlook for the cryptocurrency market. While the ISM Index paints a gloomy economic picture with potentially inflated stock market values, adjustments are deemed inevitable in the near future.
Federal Reserve’s Influence
The report underscores the fragile state of the US economy, with the US Federal Reserve’s stance playing a pivotal role in the current scenario. Fed Chair Jerome Powell’s remarks allude to a potential shift towards a more accommodative policy if inflation retreats as projected, aiming to shield the economy from further downturns.
Market Turmoil and BTC Dominance Surge
Amid a tumultuous market climate, BTC dominance soared to a new yearly high of 58% on August 5, coinciding with a sharp decline in both crypto and stock markets. The dominance shift closely followed a rapid sell-off of Ether, plummeting by up to 18% within a mere two-hour window.
Analyst’s Insight
Tony Sycamore from IG Markets warns that the recent market turmoil, coupled with the surge in BTC dominance, is a stark reminder of the inherent risks associated with cryptocurrencies. The current landscape accentuates the volatile nature of crypto assets, putting them at the forefront of the risk spectrum within the investment realm.
Stay Informed with Cointelegraph
Keep yourself abreast of the latest insights in the cryptocurrency world, including updates on the Bitcoin 2024 event, BTC Strategic Reserve Bill, and more, by exploring Hodler’s Digest from July 28 to August 3 for a comprehensive overview of the evolving crypto landscape.
