Bitcoin (BTC) Recovery Faces Key Macroeconomic Risks and Challenges

The recent recovery in Bitcoin's price is encountering significant headwinds from broader macroeconomic factors. Analysts highlight that persistent inflation, aggressive interest rate hikes by central banks like the Federal Reserve, and looming recession fears continue to pose substantial risks to the crypto market. While BTC has shown resilience, its trajectory remains tightly correlated with traditional financial markets. Key indicators such as the U.S. Dollar Index (DXY) and bond yields are critical to monitor, as strength in these areas typically pressures risk assets, including cryptocurrencies. Investors are advised to watch these macro trends closely, as they will likely dictate Bitcoin's price action in the near to medium term, despite any positive technical momentum within the crypto space.