Topic: How many months left until recession? - page 2. (Read 322 times)

Bitcoin will act in recession totally similar as Gold did in previous ones. Just that since is way more volatile the initial price decrease will look more like a total crash.  In case of recession people need founds to save their investments. So they sell what is easiest to sell first. Bitcoin and Gold are one of such liquid assets.

Bitcoin investors say this all the time, but history shows the opposite. Recessions (and especially financial crises) are not just declines in the stock market. They are global economic contractions where money flows out of virtually all assets. In 2008, gold crashed 34% in 7 months, and that was in the middle of a raging bull market.

Unless the USD is actually collapsing, then cash remains king in a recession.

if the US is heading into a recession, wouldn't bitcoin get appreciated more? 
people will want to move their money out of stock market to other assets, gold, etc
and bitcoin may be one of the options, this will drive bitcoin price up
so that means now is a good time to buy bitcoin before people moving their money into bitcoin

While a possible recession, might initially hurt the price of Bitcoin, I strongly believe that it will actually push the price into new all time highs after a while.
Bitcoin was created as a counter-measure for recession which we haven't experienced since it's inception.

Without being a market expert my thoughts are that at first a lot of highly speculative funds will sell Bitcoin, while trying to figure out which is their safest strategy (as in 2008-2012 recession most funds, moved into gold and bonds of countries with low debt/GDP ratio like Germany). My plan is to buy as many Bitcoin possible by that point.

The fear of bank restrictions and capital controls will actually create a strong buying sentiment for Bitcoin.
At this point Bitcoin will be validated as the safest method to move money around the globe. It will help corporations keep their business running and have access to the flow of money that banks will be probably start to cut. There are also laws in crisis hit countries, that instantly empty accounts if a business or individual is delinquent.

The reason Bitcoin was created was to give an answer to problems like these. Noone wishes for a recession but we have to be ready, especially after 10 years of recovery and booming markets.
I think that Bitcoin will be a useful tool to overcome a recession faster and with less consequences for the world.

Maybe we need to look at the factors that can contribute to a recessions, so for me the biggest one will be the stock market slumping. Can someone predict by just looking at the graph?



Source

Well it could affect bitcoin market as well, but there are some proponents that a stock crash could also mean a positive net effect for us.

The S&P 500 was just making new ATHs last week, so let's not jump to conclusions yet. A lot needs to happen before we can pronounce the beginning of a recession. It could be next year. It could be three years out. Preferably, it'll wait until after Bitcoin's next bull cycle completes, like next year or 2021, because I agree a deep recession and crash in the equity markets would be bad news for Bitcoin.

I found this picture on reddit. Now it is clear to me why Trump wanted interest rate to decline more. He will have slim chances for re election if recession hit already this year. Sadly recession this or next year will not help Bitcoin at all. We might even see new bottom.