TechFlow news, according to Blockworks, Ruslan Lienkha, Head of Marketing at YouHodler, pointed out in an email: "Bearish sentiment in the U.S. stock market is spreading, and concerns about a potential U.S. recession are growing. Given these factors, the current consolidation phase could evolve into a medium-term bear market." He added that last year's market performance indicated Bitcoin's consolidation phases could last for several months—or even half a year—before the next upward cycle begins.
Lienkha further noted, "While Bitcoin has the potential to develop into a hedge asset in the future, investors currently still view it as a high-risk asset, often reacting more strongly to market sentiment than traditional financial markets." Market observers will continue monitoring stock market trends and how economic data impacts the Federal Reserve's rate-cutting cycle and its ripple effects.
