Worsening US macroeconomic data and some slight changes in the Bitcoin options market could be signs that BTC’s price weakness is set to intensify.
Bitcoin experienced a significant volatility spike on Aug. 12, initially dropping 3.2% in less than an hour to $57,844 before rebounding by 5% to reach $60,700 within the next thirty minutes. This price swing reflects the uncertainty surrounding macroeconomic conditions, particularly following remarks from a United States Federal Reserve governor over the weekend. These remarks also led to gold prices surging to $2,458, just 1% below its all-time high.
Traders are now questioning whether Bitcoin might retest the $49,248 low from Aug. 5, especially given the declining interest in leveraged BTC longs and the increasing risk of a correction in the global stock market.
JPMorgan economists have raised the probability of a US economic recession in 2024 to 35%, up from a previous estimate of 25%. The report, according to Bloomberg, cited weak labor market conditions and a restrictive Fed policy as key factors.
