Topic: Surge in Bankruptcy Filings And Economic Crisis Vs Recession Vs BTC Price (Read 294 times)

"For a while" is the key here, in my opinion. Times of low interest rates will be here again, and not once, and at least those times we can expect new all time highs, but not only during those times. The fourth Bitcoin halving is coming. This can incentivize people to buy BTC while it's relatively cheap. Should we believe that Bitcoin will never be over $60k again? I don't think so. We'd been there when BTC reached $1, then $100, then $1,200, then $20k ... Each time skeptics were saying that Bitcoin was grossly overpriced, and yet we all know what happened some time after that.

Of course that a stock market crash and a big recession/depression will negatively affect the Bitcoin price.
Bitcoin reached historically high prices in times of very low interest rates, when the financial markets were flooded with newly printed money by the Federal Reserve and the other central banks. The times of "easy money" and low interest rates are gone(for a while) and this leads to multiple companies going bankrupt and to prices of financial assets going down.
We might be witnessing a stock market crash in 2024, but the Federal Reserve will have to stop it by discontinuing the interest rate hikes and start "saving the economy" by pumping more newly printed money into the financial markets.

If it happens, it will affect BTC price, but, I think, in positive ways. If fiat currencies lose their value, it's only logical to accumulate Bitcoin in times like that. Why it should be affected negatively I don't understand. One of its purposes is to serve people during economic crisis in their countries, to help them to survive. Remember Zimbabwean trillions? If Bitcoin was around at that time many people would be saved financially.

The spike in BTC prices during the Covid pandemic was indeed a time when many people were staying at home due to lockdown and quarantine. So at that time the inflow of money towards high risk investments experienced a high spike. And not only for crypto and BTC but also for the online gaming industry which experienced a fairly high increase in users during Covid. This halving may have a slightly different cause that will bring about an increase in the price of BTC. Namely, currently we know that many institutions are trying to re-enter BTC investments. In fact, several large companies have also applied for a Bitcoin Spot ETF, which is certain that when the SEC receives the application, a surge in BTC prices will also occur. The bankruptcies of many large and small banks and companies that will occur in 2023 also seem to have an effect on the rate of bitcoin prices. But I saw that when several banks went bankrupt what happened was that a lot of money went into the realm of investing in bitcoin and gold. We can see its history in the market. When there is an announcement of the bankruptcy of a bank, there is actually more money flowing into gold and BTC. So talking about impacts is always there. But we don't know whether this impact will be negative or positive. Maybe if a factory company or something went bankrupt which resulted in many employees being laid off then maybe that would have a negative impact.

Bankruptcy is more of a personal problem but there are still workers on a company and they can not invest in BTC once they got fired, so it may affect the BTC price. Economic issues can be global. This is the ones that can affect the price of BTC the most but it won't last long.

People into DCA is not a new thing but yeah it helps a lot so that the price won't totally collapse in the bad times. Given that DCA is not a new thing, people have more expectations beyond halving. You got a point there about the Covid and its effect in BTC. I think this is also because people are mainly doing online transactions because there are lockdowns and quarantines that time.

It's expected that when a company does badly, the workers are the first ones to go. The reason for this is that when you hire a lot of people, that is because you expected growing profits and that means that if you have more workers then you would be able to pay them with your growing profits and then make some more on top of that.

But, if you hired them, and didn't make that profit, that means you need to fire them to get back to what you should be having instead of what you had, otherwise you are going to keep losing more and more money. Salary is a big cost, usually bigger than anything else, and that would mean that if you do it smartly then you could make a profit back again when you drop that number down.

I am not really surprised by that data, I don't mean that I know beforehand, but I already saw mass layoff by several big companies happened several times since earlier this year. Especially companies that operating around Southeast Asia, it's where I live. I also work in marketing agencies, so I realize that companies are cutting their marketing budget.


I think everyone realize that it's different now, previously before covid, when stock market and economy in general is falling people are turn their speculation to Bitcoin, but the current Bitcoin price is already so high for people to do that again. On the latest stock market crash after covid Bitcoin are joining the bear market, so if the situation get worse, Bitcoin could probably pretty much affected.

You have a good point and sort of reminder here. People seem to think that inflation means their money in their savings account will diminish or their annual salary from their job will dramatically go down. What it is really is though is that their income is turning to not be enough with price hikes due to inflation. The example is as simple as you have stated it to be, you will still have the same amount of money but the quantity and quality of the products and services that same amount will get you will be drastically different due to inflation. Perhaps some of us needs a reminder of what inflation does to our money, cause it seems like they are blaiming it for everything these days (although I cannot deny that is is and has been a source of a lot of problems too).

whenever you see small businesses file bankruptcy.. most of the time its for them to write off debt and start the same service/product under a different brand the following month.. thus no societal harm to employees/customers

however when you see national chains go bankrupt. the big thing people need to look into is the pension fund deficit.. yes employees dont lose their jobs but find out the CEO has been syphoning off their pension deposits too

here in the UK a national chain called wilko's resently went into administration but the biggest story is that for its 2000 employees it has a massive £58m-£76m pension deficit.. yep £29,000-£38,000 pension loss per average employee.. which is alot of money

what we around the world experienced in 2008 with the real estate fiasco. we will start to see with the pensions deficit in the next decade

i know most americans will say they dont care because they have protected private 401k's but even they are at risk..
i just checked a US national chain that went into administration (bed bath& beyond) and even they have linked in some pension warnings
https://www.theretirementgroup.com/featured-article/5448093/attention-bed-bath-beyond-employees-vanguard-report-reveals-significant-decline-in-401k-balances-over-two-years?hsLang=en
heres the comedy

inflation does not make peoples account balance diminish.. $141k would still be $141k but how many loaves of bread or sports cars you can buy with it would be less .. but when they say money has escaped the accounts leaving individuals with less funds on average.. that means companies have been taking money out/losin money.. but not from inflation

Your observation is valid about correlation between Bitcoin and traditional risky markets,  highlighting how it can change with shifts in fundamentals of Bitcoin. I think it is also possible that once the market capitalization of Bitcoin approaches close to $6 trillion (estimated) similar to Forex market, it will become more stable and its price fluctuations will primarily influenced by its intrinsic strengths and weaknesses, rather than external factors tied to traditional financial markets.

While Bitcoin's correlation with the traditional financial market rises and falls, it has more or less been established that influential macroeconomic trends can certainly affect Bitcoin. Bitcoin isn't anymore the isolated independent island that it may have been perceived. Although there's still a considerably amount of fluidity or unpredictability in Bitcoin's relationship with the traditional financial market, I don't think it won't be affected by such a huge economic crisis as a market crash in no less than the US. And considering how institutions are already part of the game, there will certainly be a significant sell off.

Recently Bitcoin was perched at $27,000 and is still consolidating in that area. I hope there will be a little positive movement over the next few weeks.

The Nato camp and the Russian camp are equally strong. They each have strong egos to enter and monopolize the economy, of course. Any peaceful steps and attempts at a ceasefire will be a bit tough. Apart from that, Russia and several coalitions are also raising BRICS which will shake the USD in the future. I see the potential for Bitcoin/Crypto here as an alternative in the future and of course there is a big possibility for America to utilize crypto to save its dominance. We just noticed that many large American companies/institutions are stockpiling BTC, there are good rumors about ETFs in the region.

Certainly, there are various factors beside ETFs those can influence the Bitcoin price, in particular interest rate fluctuations and updates on regulatory developments. Today, Bitcoin is persistently making effort to breach  $27,000, and if it succeeds surpassing this significant resistance, there is a chance ,we could see a minor rally in coming weeks, with the potential for Bitcoin to approach $30,000 mark, which is an important psychological barrier.


You are absolutely correct that Ukraine-Russia war is one of root causes of ongoing economic crisis that has caused rise in inflation due to rising fuel & food prices across the globe. We must raise our voices though all available platform of social media to compel world leaders to bring this conflict to an end through meaningful negotiations.

With that events many would think to liquidate there assets and put it on more safer place. I don't know why there are other people think that if there's a economic crisis it can give huge advantage to crypto users. Maybe they think about short term since those fiat investors might go on crypto to find good opportunities but in long run they will not stay and decide to maybe buy gold since this is more safer investment they could take. For us crypto users maybe we will not get affected much on those crisis since even if they are experiencing negatives on that situation.

We can still earn since crypto market is volatile and anyone can do good trades or even continue to offer our service to the clients who's working something in crypto industry.

Regarding ETFs, this is still vague in my opinion. The SEC is still keeping its distance regarding Crypto/Bitcoin so whether or not an ETF from Blackrock or anywhere else will be accepted is still unclear. The protective nature of the SEC is very clear and maybe this is good for Bitcoin in the future too.

Many factors can influence BTC volatility apart from ETFs, economic data releases, Powell's speech or bad news can also make BTC very volatile.

You are correct that Bitcoin may fall to $20,000 or even lower before it enters into bullish phase, and this forecast is also shared in analysis of many prominent crypto analysts. A lot of noise revolving around ETF approval may keep the Bitcoin price extremely volatile during the period before ETF of prominent institutions like Blackrock is finally approved, expected in first quarter in 2024.

Moreover, it is also possible that many traditional banks including entities like HSBC are likely to allow investment and trading in Bitcoin and other cryptocurrencies, that can help them to grow their business and stay competitive in the market.

Thank you for the correction and advice to find detailed and accurate data regarding this problem. There is a distortion of data with a certain purpose after we compare one data with another, this is a kind of FUD in my opinion what is being spread by @Whalewire. Of course, with due diligence and further research, we all know that the economic situation is still above control.

Thank you for the source link which will be useful for me and other members for research materials or market observations.

Bitcoin will also suffer in the event of such a situation. The problem is that 99.9% of cryptocurrency, today, has no real useful value, except for that formed by the speculative market. And in case of global problems, who needs a low-liquidity, worthless asset in the real world? Gold, food, other demanded goods and assets will be in price

I don't think it's about an established monopoly on USD because it already has that one. USD-pegged stable currencies and fiat currencies are widely adopted in crypto and the real world. CBDC will give people more control. If someone is financially dependent on you, you can force him to do anything for you. This will give the government more control over their people because they will be financially helpless.

When trading Bitcoin, there is still a certain level of awareness among the masses that is required So in my opinion Keep Buying and Selling at the right price to Make Profits. I personally don't really care about issues like that which only contribute to making us more confused and creating our own fears.