Widening Credit Spreads Signal Potential Bitcoin Bear Market, 10X Research Warns
10X Research has identified a historically consistent warning sign of a Bitcoin (CRYPTO: BTC) bear market now flashing red: the widening of U.S. corporate credit spreads.
What Happened: According to the firm’s latest analysis, the year-on-year change in the ICE BofA BBB U.S. Corporate Index Option-Adjusted Spread has turned positive—an event that has reliably marked the beginning of Bitcoin downturns in past cycles.
“When credit spreads begin to widen—as they are now—it’s typically a signal that the correction in risk assets is far from over,” the report stated.
The rise in the corporate credit spread suggests tightening liquidity and growing credit risk, both of which have historically pressured crypto markets.
The firm emphasizes that this signal isn’t noise.
It has …
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