Analysis: BTC may drop below $50K amid increasing U.S. economic uncertainty

According to Cointelegraph, cryptocurrency market analysis firm 10x Research has released a report suggesting that growing concerns over a potential U.S. economic recession could significantly impact the cryptocurrency market. Consequently, Bitcoin (BTC) may drop below the $50,000 mark. Markus Thielen, founder of 10x Research, stated that taking long positions in cryptocurrencies using leverage might be premature. He noted that fiat inflows into the crypto market have been declining for several months. Major players are unlikely to invest in cryptocurrencies given the high volatility and unpredictable prices. Thielen recommends closing cryptocurrency positions and reducing portfolios for the time being. He further explained that the U.S. ISM Manufacturing Index for July, which has historically shown a clear correlation with BTC prices, fell short of expectations. Additionally, the bubble in the U.S. stock market is adjusting to align with the real economy, which casts a bleak outlook for the cryptocurrency market.