Amidst unstable economic conditions in the US, Bitcoin struggles to maintain its position above $107,000. The potential risks and price outlooks are being discussed.
Current Bitcoin Market
This week, Bitcoin has reclaimed the $107,000 mark, yet exchange inflows remain at historic lows as retail investors prefer to wait. The market lacks the typical characteristics of a bull run, while on-chain activity appears subdued.
Stagflation Risks in the US Economy
Signs of slowing economic growth in the US are becoming increasingly evident. The Fed has revised its forecasts, anticipating GDP contraction and rising unemployment. Concerns arise that the Fed's rate hikes could lead to stagflation, which may impact Bitcoin.
Future Expectations for Bitcoin
Analysts note that the increase in long-term holders of Bitcoin might indicate an upcoming change in trend. Historical data suggests that Bitcoin often performs well following accumulation phases. It is expected that if economic conditions improve and rates decrease, Bitcoin could regain investor interest.
The current situation surrounding Bitcoin and the US economy creates uncertainty; however, accumulation by long-term holders may signal a positive outlook. It is important to monitor upcoming economic data and Fed actions.
