The U.S. Stock market’s decline has negatively impacted crypto sentiment, pushing it into extreme fear territory. Bitcoin, once robust, approached the $85,000 mark after significant losses, mirroring the broader market’s struggles.
Widening U.S. Credit spreads and economic uncertainties are key factors driving this downturn. Analysts emphasize that these risks, along with the upcoming jobs report, have contributed to shifting market dynamics.
The future of both traditional and crypto markets remains uncertain. Especially if private credit risks escalate, it could lead to shifts in Federal Reserve policies that may favor rate cuts, potentially impacting Bitcoin and risk assets positively.
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