Topic: How would a global economic recession affect Bitcoin's price? - page 2. (Read 398 times)

I doubt it. If institutional investors are involved in Bitcoin, they'll view the crypto market akin to the stock or housing market and pull out their funds if they see the market taking a downturn. Unless Bitcoin reaches stability through mass adoption, Bitcoin will move in tandem with other markets. If the global economy crashes, every market tanks too -- crypto no exception.

Not just stop there there is also people who withdraw their money from stablecoin to direct fiat. and don't forget about LUNA crash the recent about Celcius that pending withdraw grow multiple concern about crypto world

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and last look at this US inflation chart

The global economy is in a very bad state now, so most people will have no choice but to sell their BTC in order to satisfy their needs. Only those who can afford to lose money, will buy BTC no matter what. You can bet that once the recession is over, Bitcoin and other cryptocurrencies will rise back to their former glory. Maybe BTC market prices will rebound all the way to $75k and above? No one knows what will happen as crypto is widely unpredictable.

I'm not worried about BTC seeing another bloodbath in price, as long as it works as intended. Fiat is going to collapse anyways, so relying on Bitcoin as a currency instead of an investment is the way to go. Who knows if the world transitions from the Fiat standard to the Bitcoin standard in the not-so-distant future? Just my thoughts

Certainly, inflation and global recession will have a significant impact on Bitcoin and the crypto market in general, so according to my opinion, Bitcoin will temporarily drop, perhaps to below $14,000 as a result of being affected by the global economic situation, and then the second stage comes when people begin to realize that they are losing their money as a result of inflation and that Bitcoin is better ” store of value. Therefore, they will buy bitcoin a lot to preserve the value of their money from being affected by inflation, then we will see the bitcoin rise again to new peaks and unprecedented levels, the opportunity is available at the present time to buy more bitcoin at each drop and then hold.

If this really happens, then all the countries of the world will abruptly begin to unite in small groups and create their own common currencies. I can assume that the digital yuan or bitcoin can easily replace the dollar. Nobody can predict exactly.

There is high panicking around the crypto industry. Converting crypto to fiat is becoming a norm as price of digital assets keeps devaluating . Global Economic Recession has also contributed to the rate at which investors convert their crypto to fiats due to high inflation. Traders who converts their crypto to fiat are somehow contributing to the panic as the supply is gaining more grounds making the resistance zone form series of lower highs.

The current global economic condition is really not doing well and seeing conditions like this is certainly not an easy thing either.
not only the crypto market but other markets will also turn red due to the recession,
hope the global economy returns to normal and this will take time

Some crypto investors might probably sell or convert their cryptocurrencies into fiat to have cash in hand in this situation where recession occurs. However, things might be different to other investors who decided to convert crypto to fiat not because they need cash but rather they need to cut loss or
to put a stop on their trading activities to avoid future loses.
Also, there will be investors who will decide to hold as this recession might ignite or probably goes in a different direction for cryptocurrencies such as bitcoin which the OP stated.

Global Economic Recession certainly makes many difficult things and the fastest impact is that investors will sell cryptocurrencies, although profit opportunities are very high but investors really need cash for many needs and when recession occurs, automatically makes the market red automatically.

Yes, I've witnessed people that have said they'll be holding for long but it didn't happen and they have to dump it because of some circumstances that they have faced in real life.

Any war can trigger economic down fall, it's like a domino effect and even we're not entirely related to the two countries that are in quarrel, there will surely be a heavy blow worldwide.

Only the strongest will be able to "hodl" Bitcoin long-term. I usually "hodl" BTC no matter what. But not everyone has the guts to do it. When prices are falling at a fast pace, the first thing that comes into mind is to sell BTC to avoid losing all your money in an instant. This usually happens when you don't have the extra money to spare into Bitcoin. Imagine how negative the effects over Bitcoin's price will be once we enter a global economic recession. Most people will be so scared of investing into Bitcoin, that they will prefer Gold instead. There's also the issue of China's (likely) invasion of Taiwan, which could be a severe blow to both the world's economy and Bitcoin's price. I would proceed with caution until the mainstream economy shows signs of recovery. Just my thoughts

If all people in the world are open up on crypto and they see this as more quality currency to accumulate in times of recession then most provably we can see positive things on it in terms of crisis. But if people are still afraid because of its high volatility also people doesn't trust it maybe we can see this one fail and dump the same with some other fiat currency.

If we talk about safe haven maybe it will take a long time for bitcoin to reached at this point.

Bitcoin has a good advantage over other types of currencies largely due to its nature of not being affected by inflation. Since bitcoin is inflation proof, it is expected that it should flourish amidst inflation. But most times it has refused to follow as expected. There are so many factors that contributes to that;
Bitcoin doesn't work in isolation, it doesn't exist in a different world. It is humans that buys and sells bitcoin just like other currencies. If inflation hits the economy, people will have nothing much to invest or save. Majority people will be feeding from table to mouth. By this no one talks about Bitcoin or investing in it. Meanwhile many people doesn't believe in bitcoin to the extent of trusting it. So global economic situations still affect bitcoin, but not as impactful as it will be to fiat.

I don't see BTC as a safe haven in the sense that you purchased it when it was low, say 8k dollars and it eventually rises to a 100k, you make a transaction, the person on the other end pays you at the rate it is valued, but in a situation where it drops to say 99k, you run a loss.

It depends on your description of a global crisis and how to deal with it. Trying to compare Bitcoin with stocks is fundamentally flawed because of the real differences between the two originals, as is trying to compare it with gold.

If the crisis is related to liquidity or a real problem in the economy, you will find that many have moved away from high-risk investments, and therefore the value of Bitcoin will decrease.
But if it is related to a specific activity or crisis, we may witness the opposite.

best way to view it..

use the "bread loaf" value

imagine there was no bitcoin trade at all. no volatility due to people wanting bitcoin or not and bitcoin got pegged to a fixed value..
like a loaf of bread being $2 so the price at the moment is about 11,000 loaves of bread..

in 5-10 years imagine bread was $10
the fiat value of common things would be 5x more also.
meaning people would sell bitcoin for over $100k. just to stay at same value.

now add back in the inconsistencies of the market.
electric prices are going up. meaning miners costs are going up. this means they wont sell for less value than this years low
also those small hobby miners with higher residential electric wont mine. and instead they would buy, because its cheaper to buy coin right now compared to paying their electrical provider to mine bitcoin
so even more push up of the bitcoin market price.

then there are the FIAT bank savers. realising if they held onto $10k. they cn buy 5k loaves today but only 1k loaves of bread if they just kept their fiat as fiat. so they are in dire need to spend their fiat now on things they may want in 10 years time. because its cheaper to buy them now.
or they will invest their savings in a store of value that hedges against inflation if they dont have real world things to buy and instead want to safeguard their savings.... and yep, bitcoin springs to their mind.
so even more buyers. meaning more support for a price rise.

what you are seeing this month. is not an expectation of long term trends of a down action of bitcoin price.
what is happening is those that were considering to save up for a mortgage in 10 years or buy a car. are rushing now to do so now by converting their stored value to spend it all now. so that in 10 years time they are not having to have a price ticket of 5x if they waited to buy later.

right now. the temp holders/ the short term investors are exiting. but those that hold will reap the rewards for holding over the long term.

in short if you dont need to buy anything expensive in the next couple years hoard your coin. if you NEED to buy expensive things in the next year or so. spend your fiat now, get it while its cheap. because your fiat wont buy it all in a few years. it will cost you more fiat later

On the contrary, bitcoin should flourish during a global recession. It doesn't matter whether bitcoin will be considered as a safe heaven or not, but the falling value of fiat currencies may drive up the price if the demand stays strong. But a recession is unpredictable so anything can happen in reality. But if I have to speculate, I will bet on positive outcome for crypto during a global recession.

The price is already been affected we see the market going down and up, the volatile erratic nature is becoming super normal right now. I do think that the most important thing is understanding the fact that market is not permanent so it would eventually become more stable with time.

Therefore I do understand the implications of the price decreasing with the recession but I do think we all just need to HODL and take advantage of the price at the moment , one can also combine it with trading and still earn.

With recessions ofcourse everything will go down.

To be fair, the job layoffs are mostly with high growth-focused tech companies in general, not necessarily exchange companies.

And apparently, Binance is still hiring despite the market turmoil. https://twitter.com/cz_binance/status/1537013824666095617

We already seeing that effect in the crypto space. Many exchangers are laying off their employees. With that said in the upcoming days things would be worst in terms of job placement. Job is the first thing which keeps everyone alive because that’s how we get paid and spend!

However, the price of bitcoin is different story. Prices would get affected if investors stop investing and users stop using the crypto currencies during the recession.