Originally published on: August 05, 2024
A recent report from 10x Research has shed light on the growing apprehensions surrounding the economic stability of the United States, casting a shadow of uncertainty over the cryptocurrency market.
According to the findings shared with Cointelegraph, Bitcoin’s price of $63,135 may witness a significant drop below the pivotal $50,000 mark, raising concerns for the broader crypto landscape.
The dwindling ISM Manufacturing Index, a key indicator of economic well-being, has set off alarm bells within the market. Markus Thielen, the brain behind 10x Research, cautioned crypto traders against entering leveraged long positions prematurely in light of these developments.
The analysis from 10x Research paints a somber picture, drawing parallels between the declining ISM Index and Bitcoin’s fortunes. As the traditional economic indicator falters and the stock market appears overvalued, adjustments are on the horizon.
The report emphasizes the fragile state of the US economy, influenced by the Federal Reserve’s cautious stance. Fed Chair Jerome Powell hinted at a more accommodative policy if inflation eases as projected, aiming to shield the economy from further shocks.
As Bitcoin’s dominance surged to a yearly peak of 58% amidst market tumult, Ether saw a drastic 18% nosedive in just two hours. Analysts warn that such volatile movements underscore the inherent risks associated with crypto investments.
The confluence of economic uncertainties and crypto market fluctuations underscores the need for vigilance and strategic decision-making in these challenging times. Stay informed with the latest insights and analyses to navigate the evolving landscape of digital assets. Subscribe to our newsletter for exclusive updates and expert perspectives.