Bitcoin prices attempted to rebound after five days of decline when prices fell briefly under 78,000 USD.
The wider crypto market followed bitcoin’s lead, reflecting concerns over risks of a recession in the US and a selloff in US equities.
US President Trump’s comments over the weekend about a potential recession affected sentiment and could limit risk appetite. Trade tensions, fears of a recession, and broader economic concerns have contributed to traders’ caution.
Despite recent initiatives such as President Trump’s executive order to establish a strategic bitcoin reserve and digital asset stockpile, the market responded negatively. The reserve, while seen as a positive long-term step, failed to offer immediate relief amid the lack of an aggressive policy to acquire assets directly from the markets and ongoing macroeconomic uncertainty. At the same time, the initial assets for the reserve and stockpile will come from seized assets, which the markets seen as less beneficial step for crypto markets. With bitcoin prices struggling to regain momentum, the crypto market could continue to face downward pressure in the near term.
