Today’s market scene is nothing but a bloodbath. Bitcoin has plummeted by 10%, and many altcoins are bleeding heavily, down by 15-20%. But let's wait a second before hitting the panic button. Let's take a step back, push the short-term market developments aside, and analyze thoroughly.First, it’s not just crypto feeling the heat; financial markets across the board are taking a beating (the Nikkei experienced its worst day since the 80's!). The backdrop? Several factors have contributed to the market turmoil, but two significant events stand out. First, the FED held its ground and did not alter its plans, leaving the interest rate cuts for September at the earliest. Shortly after, US unemployment rates were much higher than expected, fueling recession fears. Now, we’re caught in a scenario where a recession could be on the horizon, and the FED might be too slow with interest rate cuts. Add to this the mounting tensions in the Middle East and the ongoing conflict in Ukraine, and it’s no wonder the market is in a state of panic. (Here's also a more detailed article about what is causing the crash - one of the most-read articles on Binance today.)But here’s the thing: I’m still bullish about Bitcoin and crypto for 2024. Let me explain why.Markets React to Fear, Not RealityOne crucial aspect to understand about markets is that they often react more to the anticipation of a crisis than the crisis itself. Take the Covid pandemic as a prime example. The markets crashed when the virus started spreading, and first lockdowns were activated, with panic spreading like wildfire. However, during the actual pandemic, when the full extent of the crisis was evident, the markets rallied. Why? Because markets price in fear and uncertainty ahead of time, and by the time the actual event occurs, the worst is often over (of course, in the case of Covid, the rally was also fueled by cheap money).What does it mean for the current crash?In the current scenario, we might see more downtrends as the fear of a recession looms large. But should we expect the markets to continue tanking during the entire (potential) recession? History suggests otherwise. The rebound can be swift and powerful once the markets digest the initial shock and uncertainty.Pressure on Central Banks to Act FastAnother reason for my bullish stance is the potential response from central banks. Massive economic turbulences, like the ones we’re witnessing, could force the FED and other national banks to act much quicker than planned. The pressure to prevent a full-blown recession might lead to sooner-than-expected interest rate cuts and the injection of fresh money into the markets.Remember, central banks hate recessions, especially with elections looming on the horizon. Speaking of which, with the upcoming US elections in autumn, you can bet that the government will pull out all the stops to either avoid a recession or cushion its impact. History shows us that election years often bring favorable market conditions as governments take measures to ensure economic stability and growth. This could, in turn, provide a much-needed boost to the crypto markets as well.A Positive Outlook for the Mid- and Long-TermSo, while we might face a turbulent August and September, I remain positive for the rest of the year. I’m not buying into the doom-and-gloom predictions of Bitcoin crashing to 12k or the crypto market collapsing. Yes, the markets are volatile, and people tend to overreact. But that’s precisely why I’m bullish. The overreactions create opportunities.In conclusion, while the current market conditions are undeniably rough, the long-term outlook remains strong. The market panic we’re seeing today could very well set the stage for a robust recovery in the coming months. As always, stay calm, stay informed, and don’t let fear dictate your strategy.👉 Found this article valuable? Make sure to like and share it!