Ethereum and XRP struggle to maintain a critical bullish structure in the middle of a moderate recovery on Friday. The cryptocurrency market operates with a weak feeling and a decreasing interest of traders and retail and institutional investors.
The panorama for Bitcoin (BTC) has been mostly bassist since it reached a historical maximum of US $ 111,980 on May 22. At the time of writing this report on Friday, the largest cryptocurrency per capitalization is around US $ 103,477, an increase close to 2% in the day after a fall of more than 3% on Thursday.
The main Altcoins Ethereum (ETH) and Ripple (XRP) have not escaped the bearish wave that crosses the crypto market in the midst of growing concerns about the tariffs of the United States (USA), its impact on global trade and the fears of recession in the largest world economy.
Fears grow to a recession in the midst of Trump’s tariffs
The conflict between US President Donald Trump and the CEO of Tesla, Elon Musk, has revived fears to a recession. According to Musk, the US walks on unstable terrain, citing a growing situation of debt and high interest payments. The Tesla CEO warns that tariffs implemented by Trump could cause a recession in the second half of the year.
A recent note from Mike Wilson, a strategist Chief of American Actions and Cio de Morgan Stanley, pointed to a mild recession. Wilson said the trigger for this moderate deceleration could be a repetition of the mass sale that occurred in April, either in summer or autumn.
However, the Bank believes that the recession will pave the way for a bullish rebound in US actions, driven by probable rates cuts by the Federal Reserve (Fed) and possible adjustments in corporate profits expectations.
“Given the cyclic recessions that we have already experienced and moderate growth in much of the private economy in recent years, we believe that the drop in profits per action (EPS) will be slighter than during previous recessions,” Wilson said in the note reported by Business Insider.
The cryptocurrency market remains lethargic in the midst of uncertainty related to US tariffs and, by extension, the resurgence of fears to a recession.
The weakening of the dollar compared to the progress of treasure yields and the constant increase in public debt levels in the US configure a systemic stress scenario. The “Great Beautiful Law” promoted by President Donald Trump will aggravate the deficit at US $ 2.4 billion during the next decade, according to the US Congress Budget Office.
How will the price of Bitcoin follow?
From the goodbit platform they affirmed that, although in the short term the volatility continues will be maintained as an inherent factor, the concentration of the offer in the hands of institutional investors introduces a structural bullish bias. “As long -term positions are consolidated, liquidity from small holders is more exposed to price oscillations, amplifying possible upward accelerations in intense demand phases,” they said.
Source: Ambito
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