Expectations of an economic recession in the United States have resurfaced, Bitcoin has faced a cyclical blow, presenting medium to long term allocation opportunities.
The global macro financial situation, especially the U.S. market, has undergone a dramatic change recently.
U.S. inflation data rises, consumer confidence falls to a 15-month low, prompting traders to begin pricing in a potential economic recession, leading to a rapid decline of the three major U.S. stock indices near the 120-day moving average.
Risk aversion is rising, the yield on the US ten-year Treasury bonds is rapidly declining, and the gold market is also showing signs of peaking.
Affected by the correlation with the U.S. stock market, Bitcoin, which was poised to rise, broke through the support level and fell sharply in the last week of February, creating the largest drawdown and the biggest weekly loss of this cycle.
Analysis suggests that this market trend essentially reflects a correction of the market's previous optimistic expectations. Based on the possible self-adjustment of U.S. policies and the long-term positive logic of the cryptocurrency market, Bitcoin may currently be welcoming a good opportunity for medium to long term positioning, and investors can evaluate...