10x Research founder Thielen said Bitcoin's trend reversal remains premature after the cryptocurrency closed July below $63,000 and fell 3.2 percent over the past week. He noted that multiple economic and market risks continue to weigh on the digital asset.
Economic risks and miner selling
Thielen warned that rising 10-year US Treasury bond yields could force the Federal Reserve to resume raising loan interest rates as early as September. A prolonged period of high rates could negatively affect risk assets, including digital currencies.
The businessman also highlighted increased selling by miners as another threat, noting that mining companies reoriented toward artificial intelligence control about 100,000 BTC. He added that large investors holding significant reserves of the first cryptocurrency could create additional market supply.
Thielen concluded that returning to sustainable growth requires a favorable economic situation and a firm price consolidation above $60,000. Previously, Zach Pandl, head of research at Grayscale Investments, listed factors that could help pull Bitcoin out of its prolonged bear market.
