Can change everything for bitcoins. While the threat of a global recession is flat and the tension between the United States and China intensifies, the market retains its breath. A business agreement could trigger a new bull running … but the failure could dive BTC in red.
In short
- Bitcoin is endangered by a possible global recession scheduled for this summer.
- Price negotiations between the United States and China in May are essential to prevent the decrease in bitcoins.
- In the case of an agreement between Beijing and Washington, Bitcoin could bounce back; Otherwise, two -strength losses are possible.
Bitcoin under pressure: recession hovering in May
While Bitcoin is trying $ 97,000 and reveling 64.85 %, winds appear on the horizon: recession. In fact, a huge recession could hit BTC this summer, driven by a sudden decline in prospects for business profits, which has been the most significant since 2020. In this context, the development of business relations between the United States and China becomes for investors.
Restoring discussions on customs tariffs between Beijing and Washington could strongly affect the course of bitcoins. To this end, the end of exceptions from certain Chinese imports (parts of cars, small packages below $ 800) could get tension. And in the absence of an agreement in May, Bitcoin could record two -prerovable losses.
However, this extreme scenario remains unlikely. Both powers have no economic interest in slowing their exchanges. The agreement, or at least a compromise around 10 %, seems to be more realistic.
Threat or opportunity?
Despite these risks of recession, some experts see the bull potential. Bitcoin could first be corrected with risky assets before it is reflected as in 2020. In connection with stagflation, the queen could even attract investors in seeking inflation such as gold.
However, its strong current correlation with technological events makes the prospects more vague. Like systemic risks associated with global economic slowing, which could strongly penalize speculative assets, including bitcoins.
Bitcoins are ovarian as the main economic turning point. Therefore, its immediate future remains uncertain among recession concerns and Chinese American tensions. The markets carefully examine tariff negotiations, the result of which could either revive the BTC to its peaks or to the precipitation of a brutal decline. May promises to be crucial.
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The world is evolving and adaptation is the best weapon that survives in this undulating universe. I am interested in everything about blockchain and its derivatives. To share my experience and promote an area that fascinates me, nothing better than writing informative and relaxed articles simultaneously.
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The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.
