Bitcoin in Peril: 10x Research Warns of US Economic Fallout

Once again, the crypto market is going through a period of turbulence. Some investors are even on high alert following the release 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.

📉 Is #Bitcoin and #Crypto Market Heading for a Major Correction?

According to @10x_Research, BTC might dip to $42,000 due to economic weaknesses, shifting leverage since March, and failing to maintain the 21-month moving average. 📊

🔍Key Technical Points:

-Support levels:…

— MYX.Finance (@MYX_Finance) August 5, 2024

Bitcoin Facing an Imminent Economic Storm: A Drop Below $50,000 to Be Expected?

The ISM Manufacturing Index is a key barometer of the economic health of the United States. At the moment, it shows a worrying slowdown. According to the 10x Research report, this situation could have disastrous consequences for Bitcoin as well as for all digital assets.

In this regard, 10x Research founder Markus Thielen warns:

“It might be premature for cryptocurrency traders to open new leveraged long positions.”

Specifically, the 10x Research report reveals a concerning historical correlation between the ISM index and Bitcoin. According to it, Bitcoin has historically experienced significant corrections when the ISM peaked. This analysis therefore suggests a potential drop in Bitcoin below the symbolic $50,000 mark.

That’s not all! The S&P 500 could also undergo a 20% correction. Enough to amplify the bearish pressure on the digital asset market.

Bitcoin Dominance, a Misleading Indicator?

Despite these grim prospects, Bitcoin’s dominance hit a new annual high of 58% on August 5. Tony Sycamore, an analyst at IG Markets, however, warns that this rise in dominance in a context of falling prices highlights that crypto is at the sharp end of the risk asset spectrum. This 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 FED’s decisions will prove crucial for the future of Bitcoin and the crypto market in the coming weeks.