Research analysts told Cointelegraph, that Bitcoin’s recovery to its highest level may be threatened by high recession fears, which may reduce if the United States and China begin to tariff negotiations this month.
The appetite for global risk origins such as Bitcoin (BTC) may take another success, as analysts from Apollo Global Management expect the stagnation by summer.
Samantha Ladok wrote on April 26: “Apollo predicts summer stagnation: a sharp decrease in profit expectations since 2020,” Samantha Ladok wrote on April 26. mail.
The progress in customs tariff negotiations may be the most important factor that affects a possible stagnation and the path of bitcoin prices Aurelie Barthere, the main research analyst at Crypto Intelligence Platform Nansen.
“Mayo is seen as a pivotal where Chinese charges reach the beaches of the United States, and exemptions in some customs tariff categories such as auto parts and USD-800 sub-charges from China/ Hong Kong ending,” said Batteri from Quintlegraph, adding that the lack of negotiations in May may lead to economic stagnation and the loss of double half. “
However, this is the least likely scenario, because China or the United States “has an economic interest in the interruption of bilateral trade,” adding:
“Given, the main tariff scenario is to reach the United States deals or at least” in principle “agreements with its main commercial partners, and may settle on a 10 % mutual tariff.”
Bartheri said that if this scenario is running and relieving tensions circulating in May, Bitcoin is likely to reconsider its highest level ever.
The United States has contacted China through multiple channels, “to indicate its openness to customs tariff negotiations, Reuters I mentioned On May 1, quoting unnamed sources, which spoke to the Chinese media platform of Yuyuan Tantian.
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Bitcoin may gather despite stagnation
While most analysts hope to see commercial negotiations in May, reduce economic concerns, Bitcoin may see more bullish trend even in the face of a possible recession.
“Initially, Bitcoin and encrypted currencies may be fluctuated, as they decrease along with risk assets such as stocks due to investor sales,” said Andy Lyan, an international government author and advisor, said.
“Historical data, such as the stagnation after 2012 from Bitcoin, indicates that it may refresh, especially if it is seen as a hedge against inflation.”
“In recession (high inflation and slow growth), bitcoin may often perform a well compared to gold, and attract investors looking to maintain value. However, its increasing association with the stock market, especially technology shares, provides uncertainty,” said, adding that encrypted investors should continue to monitor the transformation of economic policy to the market direction.
However, Bitcoin’s increasing association with technical stocks add uncertainty to that view. In the wake of the Covid-19 crash in March 2020, Bitcoin rose by more than 1050 %, increasing from $ 6000 to the highest level ever at $ 69,000 in November 2021. This gathering came after the Federal Reserve Firing 4 trillion dollar asset purchase program in March 2020.
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Other industrial observers are still concerned about the response of the encryption market to the economic stagnation.
“If analysts are right about stagnation (which is definitely not guaranteed), the encryption markets are probably decreased alongside assets and stocks on a wider risk scale,” according to Marsen Kazimerzak, co -founder and executive director of Blockchain Oracle Redstone.
“The tariff for the liberation day and the slowdown in truck transport may create a historic economic infection that strikes the most difficult speculative assets,” Kazimijach said.
He added: “While the growing institutional adoption of Crypto provides some uncertainty, it is not enough to overcome the basic classification of risks that still dominate the market behavior.”
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