Bitcoin’s Valuation Reflects Deep US Recession Fears
- André Dragosch suggests Bitcoin is pricing in a potential deep US recession.
- Approximately 90% of Bitcoin’s performance is linked to macroeconomic factors.
- Market assigns a possible 25% probability to quantum-related risks, though Dragosch estimates it closer to 5%.
- Current valuation gap is more pronounced than during the COVID-19 recession.
- At present, Bitcoin trades at $67,591, down about 46% from its all-time high.
Bitcoin’s recent pullback may be more about macroeconomic concerns than crypto-specific issues, according to André Dragosch from Bitwise. He argues that if a US recession does not occur, Bitcoin could rebound significantly due to current mispricing based on economic indicators.
Dragosch highlights that despite fears of global economic decline, some indicators show positive trends that might support risk assets like Bitcoin over traditional safe havens such as gold. (Source)
