10X Research: Bitcoin holders' "bullish impulse" on recession may be premature

Markus Thielen, head of research at 10x Research, said it may be too early for bitcoin holders to start bullish on the long-term impact of a potential recession on bitcoin prices. Thielen said in an April 11 market note that credit spreads continue to widen, indicating that "recession fears may be reaching deep into the economy." He said: "It's too early to expect a bullish impulse.
While the long-term impact of a recession could be bullish for bitcoin -- as the U.S. Federal Reserve typically takes easy monetary policy after a rate cut, Thielen warned that bitcoin could face headwinds before gaining bullish momentum. "Typically, when China depreciates or the Fed cuts rates, bitcoin sells first, as the impact of the first rate cut is likely to be modest, while also confirming the weakness of the economy," Thielen said.