"The initial reaction to Bitcoin as a'risk-off 'asset is not surprising," Bernstein said in a research note. "This pattern is common in the Bitcoin market (and has previously been seen in the flash crash of March 2020), especially since it is the only market that trades on weekends. We remain calm." The analysts added: "We don't see any incremental negatives here. If the usual response to US recession fears is interest rate cuts and increased monetary liquidity, we expect prices of'hard assets' such as bitcoin [digital gold] to rise." Bernstein expects the crypto market to respond to macroeconomic and election signals in the third quarter. However, analysts predict that if the broader stock market recovers due to the Federal Reserve's response, the bitcoin and cryptocurrency markets will follow suit.