Will Stress and Problems Increase in Bitcoin? This Could Determine the Plummet Trend! - Coin Bulletin

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The widening of credit spreads could trigger a new wave of get dumped for Bitcoin (BTC) and other risky assets, and may be a harbinger of increasing stress in financial markets.

Recently, credit risk spreads ( have reached their highest level since August 2024, causing significant concern in the market. The widening of credit risk spreads may negatively impact the prices of Bitcoin and other risky assets.

Recent data shows that credit risk spreads are rapidly increasing, particularly through the IEI/HYG ratio. This ratio is an important indicator used to track credit risk spreads and has made the largest leap observed since the Silicon Valley Bank crisis in March 2023. During that period, the price of Bitcoin had fallen below 20,000 dollars. In this context, the widening of credit spreads could directly affect Bitcoin's future price movements.

The widening of credit spreads means an increase in the interest rate difference between safe government bonds and riskier corporate bonds. This situation indicates that investors have started to avoid risk and that financial conditions have tightened further. Historically, a sharp widening of credit spreads has led to a depreciation of Bitcoin and other risky assets. Therefore, whether the current widening process will trigger a new dump wave for Bitcoin is a major question mark.

)# What will be the direction of Bitcoin?

One of the questions that investors are currently curious about is whether the widening of these credit spreads has peaked. If the credit spreads continue to widen further, this could be an indication of increasing stress in the financial markets and could mean bigger problems for risky assets, especially for Bitcoin.

This widening of credit spreads can directly affect not only the risk appetite in the markets but also the future performance of assets like Bitcoin.

BTC-2.26%
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