Impact on the market:

• Bitcoin: Dropped by 3.7%, now trading below $54,000, signalling continued bearish pressure.
• S&P 500: Fell by 1.5%, bringing weekly losses to 4%, driven by recession fears.
• Nasdaq 100: Declined 2.3%, leading to significant tech stock losses.
• WTI Futures: Slumped to its lowest price since June 2023, reflecting broader economic concerns.
• US 10-year yields: Dropped to 3.65%, a low not seen since mid-2023, signalling a flight to safety among investors.

Bitcoin’s Short-Term and Long-Term Outlook:

• Short-Term: Bitcoin remains under pressure with risks tilted to the downside, potentially testing the $50,000 level again in the coming weeks.
• Long-Term: If the US enters a recession and the government responds with rate cuts, quantitative easing (QE), and fiscal stimulus, Bitcoin could rally as a hedge against inflation and currency debasement. Some analysts project a price surge to over $100,000 in the next few years.

Political Influence on Bitcoin:

• Trump vs. Harris: A Trump victory, perceived as more crypto-friendly, could boost Bitcoin’s price, but uncertainty remains high until the 2024 US Presidential election is settled.

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