A global recession hits every market as it affects the spending capability of the community; This reduces how much money people have to put into different assets and usually slows demand and reduces the price.
To understand how this could affect Bitcoin, we can take a look at the 2020 crisis, where there was total and partial lockdown in most places, slowing economies to a halt, Bitcoin however maintained a fairly stable price and acted as a sort of hedge funds for most, while many other assets were going to the ground.
This of course, does not mean bitcoin is resistant to market crisis, the reaction would not always be the same.
It's also important to note, that BTC has its market cycles, so drops and spikes are not always the result of any particular cause.
Topic: How would a global economic recession affect Bitcoin's price? - page 3. (Read 374 times)
To stop inflation, the world bank stopped the circulation of money by stopping printing. but can't completely stop the money they've printed. When interest rate increases in the past have shown price volatility which has resulted in large withdrawals of money from exchange to fiat to meet standard interest costs.
Bitcoin is not the only one that will fall into a recession, but all investment assets traded on exchanges will experience a significant price depression. Inflation prevention in each country will run slowly, where the price hike in the market will also trigger a delay in the ups and downs of unstable prices.
Bitcoin is not the only one that will fall into a recession, but all investment assets traded on exchanges will experience a significant price depression. Inflation prevention in each country will run slowly, where the price hike in the market will also trigger a delay in the ups and downs of unstable prices.
What are your thoughts?
The fear of an economic slowdown is what send all the risky assets crashing down this year, crypto currencies are part of these assets. A recession now would make exeything worse because economies would contract, leaving the consumers struggling even more. One the one side we have rising inflation which makes living expenses rise and on the other side we have worse outlooks for the future. I would expect asset prices to drop future as investors are heading for save investment. The problem is that safe investment don't work during high inflation times, their return is not enough to cover the rise in prices. That's why I think we will see more demand crypto currencies the higher inflation rises. The independence of crypto currencies is what makes them protect us against inflation and losing value in fiat money.
1.The US dollar is doing pretty well in 2022. The war in Ukraine helped for the drop of the Euro, so the US dollar is actually stronger than before. The Federal Reserve increasing the interest rates might add more value to the US dollar.
2. Everyone is talking about recession, but the recession might not come. There might be a negative net economic growth, which means bigger inflation and lower economic growth. Stagflation is also an option, but we don't know if the Saudi Arabians won't decide to increase oil production. The disruption of the supply chains is something that creates problems right now, but the global economy will adapt and new supply chains will be created.
3. The Bitcoin price might go down or it might do up. Nobody knows what will happen so all the opinions here are mostly guessing and fantasizing.
If the global economy starts growing with a faster temp, the Bitcoin price will go up. If there's recession/stagflation, the crypto winter will continue.
2. Everyone is talking about recession, but the recession might not come. There might be a negative net economic growth, which means bigger inflation and lower economic growth. Stagflation is also an option, but we don't know if the Saudi Arabians won't decide to increase oil production. The disruption of the supply chains is something that creates problems right now, but the global economy will adapt and new supply chains will be created.
3. The Bitcoin price might go down or it might do up. Nobody knows what will happen so all the opinions here are mostly guessing and fantasizing.
If the global economy starts growing with a faster temp, the Bitcoin price will go up. If there's recession/stagflation, the crypto winter will continue.
so we need to know that for now crypto is not a safe haven and may need to wait for the market to stabilize again,
Stabilize again? Especially when talking about crypto in general (crypto was and is never a safe haven), since when did bitcoin and crypto stabilize in the first place? It was never stable in any timespan besides a few days up to a week.
Crypto market is different compared to stocks because people see it as a safe haven for their investment.
We have passed many economic problems already and yet the market is still here and it's still profitable to invest in.
remember when covid-19 was first announced? people panic and there's a problem with global economic but bitcoin soar and even achieve its new ATH.
We have passed many economic problems already and yet the market is still here and it's still profitable to invest in.
remember when covid-19 was first announced? people panic and there's a problem with global economic but bitcoin soar and even achieve its new ATH.
The pioneer cryptocurrency has often been hailed as a "safe haven", so it should be able to serve as an alternative to Fiat during times of crisis.
In terms of market movement — it could potentially be a safe haven in the future when the market matures more, but most probably not a good save haven in the next few years for the reasons you've mentioned.
so we need to know that for now crypto is not a safe haven and may need to wait for the market to stabilize again,
but indeed we need to see it in the long term
There have been talks among experts of a global economic recession taking place soon.
You say it as if it will be a very different thing from what is there now, and it is not. A recession is defined as GDP falling two quarters in a row and we are on our way, we are not far off. So, recession will simply be the realization of what we are seeing.
Monetary policy, energy prices and inflation have already affected the price of Bitcoin. That the recession will be confirmed is not going to affect it much more.
It's most probably Bitcoin will decline well below $10k, as the global economy comes to a halt.
I doubt very much that it will halt, and if that happens, the S&P will drop below 2,000 points, etc. It won't be bitcoin alone that will continue to go down and it would be a disaster. But I see that as unlikely.
There have been talks among experts of a global economic recession taking place soon.
Isn't it occurring as we talk?The COVID-19 pandemic, the persisting Russia-Ukraine crisis, and several other factors will lead us there faster than you could imagine. Considering that the US Dollar is the world's reserve currency, anything that affects its value (inflation) will have a chain effect over other countries' economies as well. Now this could have profound effects over Bitcoin's price within the short term, as the crypto market "mimics" equity/stocks market's behavior. It's most probably Bitcoin will decline well below $10k, as the global economy comes to a halt. Or things could head in the other direction, leading Bitcoin towards new All-time-highs. The pioneer cryptocurrency has often been hailed as a "safe haven", so it should be able to serve as an alternative to Fiat during times of crisis.
What are your thoughts?
Whatever happens, plan yourself on how long you're willing to stay holding bitcoin. Long term is still the best decision while holding it just to avoid being worried with the current world events. What are your thoughts?
Also, there's the China-Taiwan tension and that's also something that we don't want to happen and sure the economy of most countries ties to the both of it will definitely be affected too.
The pioneer cryptocurrency has often been hailed as a "safe haven", so it should be able to serve as an alternative to Fiat during times of crisis.
In terms of market movement — it could potentially be a safe haven in the future when the market matures more, but most probably not a good save haven in the next few years for the reasons you've mentioned.
When global recession come every market falls. because banks pull out money supplies to control inflations, interest rates rise and investments fall. This is a general trend. Now if a recession come it will be first for bitcoin. I believe during recession many companies layoff their best people. I believe such people will engage themselves in web 3.0, for money. There will be expansion of blockchain ecosystem, the bitcoin will surge and once again people who are critic will say its all imaginary, but bitcoin will go to moon.
However, the economic recession will certainly have an impact on all fields. Because the economic recession itself is closely related to an increase in the unemployment rate, a decrease in retail selling prices, to a slowdown in economic activity. And of course it can affect the bitcoin market. because the decline in people who invest will be felt when this economic recession lasts. so that people will spend more money to meet the needs of their daily life. and there will be little left for investment. even on a worse scale can make people no longer able to invest and even withdraw their investment. But that's if the real economic review occurs. and it can be said very close to the possibility of happening because the economic review itself is a period of weakening the economy that lasted for two consecutive quarters.
There have been talks among experts of a global economic recession taking place soon. The COVID-19 pandemic, the persisting Russia-Ukraine crisis, and several other factors will lead us there faster than you could imagine. Considering that the US Dollar is the world's reserve currency, anything that affects its value (inflation) will have a chain effect over other countries' economies as well. Now this could have profound effects over Bitcoin's price within the short term, as the crypto market "mimics" equity/stocks market's behavior. It's most probably Bitcoin will decline well below $10k, as the global economy comes to a halt. Or things could head in the other direction, leading Bitcoin towards new All-time-highs. The pioneer cryptocurrency has often been hailed as a "safe haven", so it should be able to serve as an alternative to Fiat during times of crisis.
What are your thoughts?
What are your thoughts?
Jump to: