PANews reported on April 11 that according to Cointelegraph, Markus Thielen, Research Director at 10x Research, stated that it might be too early for Bitcoin investors to be optimistic about Bitcoin's price due to the long-term impact of economic recession. On April 11, he noted in a market report that the continued expansion of credit spreads indicates growing economic recession concerns. He said, "It is too early to expect a bullish momentum."
Although in the long term, an economic recession might be favorable for Bitcoin due to monetary easing policies after the Federal Reserve's interest rate cuts, Thielen warned that Bitcoin might face resistance before gaining bullish momentum. He noted that typically, Bitcoin would first be sold off during Chinese currency depreciation or Federal Reserve interest rate cuts, as the first rate cut has limited impact and confirms economic weakness. Historically, when credit spreads widen, Bitcoin faces greater downward pressure and takes longer to recover. This suggests that while opportunities may exist in the long term, Bitcoin may still be under pressure in the short term. However, currency depreciation may be unfavorable for the market in the short term but beneficial in the long term.
