BTC could fall to $52K on recession fears and deteriorating sentiment

BTC could fall to $52,000 amid recession fears and deteriorating sentiment among futures traders, according to Cointelegraph. "Earlier, JPMorgan raised the probability of a US recession to 35% from 25%, while FOMC member Michelle Bowman said a September rate cut is unlikely due to still high inflation risks and a weak labor market. Furthermore, the annualized Bitcoin futures premium has remained below 10% since July 30th (local time). This suggests a lack of leveraged demand," he said. "As BTC price volatility continues, trader sentiment could deteriorate or mass liquidation could occur, pushing BTC down to the $52,000 level," he added.

Meanwhile, a Bernstein report from Wall Street investment bank Bernstein analyzed that the rising chances of Vice President Carmela Harris winning the election could be the cause of the Bitcoin price decline. "U.S. presidential betting on decentralized prediction market platform Polymarket and recent polls have increased Harris' chances of winning. The Democratic Party's broader approach to crypto and her unclear stance on crypto regulation are interpreted as bearish signals for the crypto market," the report said.