10x Research: Bitcoin holders' "bullish impulse" towards economic recession may be premature

Markus Thielen, the research director of 10x Research, said that it might be too early for Bitcoin holders to start considering the long-term impact of a potential economic recession on Bitcoin prices. In a market report on April 11th, Thielen stated that the continued widening of credit spreads indicates "concerns about an economic recession may be seeping into the economy". He said: "It's still too early to expect bullish momentum. Although the long-term effects of an economic recession could potentially boost Bitcoin - as the Federal Reserve usually adopts loose monetary policies after lowering interest rates - Thielen warned that Bitcoin might face headwinds before gaining bullish momentum." Thielen added: "Typically, when China devalues or when Fed lowers interest rates, Bitcoin is first sold off because the impact of initial rate cuts may not be significant and also confirms economic weakness."