BlockBeats News, April 11th, according to Cointelegraph, 10x Research Managing Director Markus Thielen stated that the Bitcoin "bullish outlook" resulting from a potential economic recession may be premature at this time.
Markus Thielen stated that the credit spread continues to widen, indicating that "concerns about an economic recession may be more deeply permeating the economy." Although the long-term impact of an economic recession may be favorable for Bitcoin because monetary easing usually follows a rate cut by the Federal Reserve in the United States. However, Bitcoin may face some resistance before gaining bullish momentum. Typically, when the Chinese yuan depreciates or the Fed cuts rates, Bitcoin tends to experience selling pressure first because the initial rate cut may not have such a significant impact and also confirms the state of economic weakness. Historically, when the credit spread widens year-over-year, Bitcoin often faces greater downward pressure and requires more time to recover.
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