The price of Bitcoin has risen back to the $60,000 level after it fell around $50,000 due to 'extreme fear' dominating the broad market sentiment.
For now, investors will be looking for signs that the market may be headed for a recovery.
The world's largest asset manager and producer of Bitcoin spot exchange-traded funds (ETFs), BlackRock has warned that the crypto market is facing price volatility and predicted the Fed will not cut rates as quickly as the market expects.
Blackrock Investment Institute Strategist Jean Boivin said they see various factors pushing the market up and down, especially fears of a resurgent recession due to weak economic data, the United States election and massive profit-taking activities.
Last week, a weaker-than-expected US jobs report triggered a fall in Bitcoin prices with a slowing job market stoking Fed concerns.
The market is now waiting too long to cut interest rates and could cause the economy to go into recession.
Additionally, Bernstein analysts said that the price of Bitcoin could fall almost 50% to around $30,000 if the 2024 Democratic Party candidate Kamala Harris wins the US presidential election in November.
They also think that the victory of the former US president, the Republican candidate, Donald Trump is able to push the price of Bitcoin to $90,000 because of his high support ahead of the election.