Why is bitcoin pumping when the economy is heading into a recession?

philipma1957

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Quote from: escanor7384 on June 28, 2023, 11:03:06 AM

Forgive my ignorance, I am very new to this space. I saw talks about CBDCs and that drew my attention back to cryptocurrencies. I thought the last bull run would be the last we would have seen of bitcoin ever reaching those heights so I stopped looking at the crypto space ever since. But now we have discussions about dethroning the dollar and CBDCs, I am changing my mind about that, but I still find it fascinating that bitcoin is pumping in this economy right now. I am no means an expert in economics as you can clearly tell, would appreciate if anyone who had the knowledge could shed some light here. Always keen to learn. Thanks

One post and by by.

Sad that people do this

I can think of a few reasons why the op went by by..

What is even better is btc has gone up ⬆️ up 🆙 and away .

well at least to 43k.

Simplest answer is this a miner rally much like the one in fall of 2015.

STT

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how Bitcoin would react to economic meltdown situation, it is yet to seen as it has never faced such situation since its inception in 2009

Theres been incidents but 2008 era was a 50 year storm event its not supposed to happen like that at all in terms of preparation but even so it should be rare in its setup and the magnitude of that failure, the bailout the diversion to fiscal budgets to global accounting standards, the amount of laws passed for this failure was gigantic and once in a generation type stuff. So Im told BTC occurred because of those decisions because we decided to divert the world not hold principals of capitalism etc.
I presume whoever came up with BTC did so because they especially think the meltdown scenario will occur again and maybe in their lifetime ie. far too soon. Most who saw 1929 and suffered from it didn't have to fear it would occur again but the BTC originators I believe expect a far more rapid occurrence if they have no belief in the solutions found at that time they will be correct and BTC is the attempt to mitigate and save some from that failure perhaps. I'm not fully versed but I think that's a fair conclusion, we've had troubles since 2009 but not systemic meltdown level events

JeffBrad12

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honestly I guess some people just want to spare their wealth out of the recession, and it happens that bitcoin is also one of the most easiest way to fight against the inflation that might rise really high when recession hits other than some other precious metals.
really there's no proper reasoning for this, this could be fomo, it could be the fear of recession causing their wealth which initially was stored in fiat to plummet in value.
no one knows for sure but many people already seeing bitcoin as some sorts of gold alternative.

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Quote from: South Park on July 21, 2023, 03:53:58 PM

Quote from: justdimin on July 18, 2023, 11:32:40 AM

Gold and Bitcoin both have limited supply, which means that the price of it will go on as long as people find it valuable. There are a lot of people who think gold is valuable and it has been thousands of years like that, and some people worry that bitcoin will not be like that in the future because it's a tech thing and tech evolves whereas gold is gold, there is nothing to evolve.

But I believe that as long as we keep believing in bitcoin, then it can have a similar future, or at least in our life time which we should be careful about. So all in all, I believe it's not a bad idea to trust bitcoin to be higher, and reach to gold levels one day, not anytime soon, but it has the potential to help us during these type of periods.

There is no doubt that gold is a great asset to have, but at the same time the world is becoming more and more digital and bitcoin not only offers a great asset in which you can invest, but it is also an asset you can use comfortably today as the digital nature of bitcoin makes it especially suitable to make all kind of payments online, while you can carry it and no one will ever know you are doing it unless you specifically tell people that you are doing it.

The world is moving towards technology, which means there is still a chance that in the future bitcoin will be upgraded or something better will be created that will outperform and replace bitcoin. therefore, it is still very difficult to surpass gold, an asset that has existed for thousands of years and there is still no one that can replace it. this is something that I've been thinking about and don't think bitcoin will one day surpass gold.
Bitcoin is really great because it can both be used as an asset, can be used for payments, and can be a bank for yourself. but the tech world is always fast-moving so it's hard to be certain about the future of bitcoin.

South Park

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Quote from: justdimin on July 18, 2023, 11:32:40 AM

Gold and Bitcoin both have limited supply, which means that the price of it will go on as long as people find it valuable. There are a lot of people who think gold is valuable and it has been thousands of years like that, and some people worry that bitcoin will not be like that in the future because it's a tech thing and tech evolves whereas gold is gold, there is nothing to evolve.

But I believe that as long as we keep believing in bitcoin, then it can have a similar future, or at least in our life time which we should be careful about. So all in all, I believe it's not a bad idea to trust bitcoin to be higher, and reach to gold levels one day, not anytime soon, but it has the potential to help us during these type of periods.

There is no doubt that gold is a great asset to have, but at the same time the world is becoming more and more digital and bitcoin not only offers a great asset in which you can invest, but it is also an asset you can use comfortably today as the digital nature of bitcoin makes it especially suitable to make all kind of payments online, while you can carry it and no one will ever know you are doing it unless you specifically tell people that you are doing it.

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Quote from: KiaKia on June 28, 2023, 12:28:11 PM

You are one of those thousands of people who only see interest in Bitcoin when it's surging in price, if not you won't be asking this question.

Your worries right now shouldn't be the Bitcoin pumping in a recession, it should be you not having some Bitcoin already before the recovery.

What are you doing right now? Do you except the bad economy to keep affecting Bitcoin value for a long time until the economy is getting better?

Nothing last forever bro, hard times always fly by just as the good times too, we are in a bear market and it's not too late, do yourself a favor and start buying Bitcoin..

I agree. It's honestly the way they see Bitcoin as a simple means of earning money that makes them think that while the economy is heading into a recession so is Bitcoin. If it's going down then save it then you'll be thankful once everything goes up again in the system. It's honestly just a game of knowing what steps to take and what decision will be more beneficial to you.

justdimin

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Quote from: irhact on July 17, 2023, 02:56:21 AM

Quote from: |MINER| on July 16, 2023, 03:57:38 PM

There are some things that don't get worse no matter how bad the economy gets. And as an example you can take gold as its price has only been increasing for ages. And I also think that bitcoin is the digital gold. And that's why even if the economy is going bad, Bitcoin is not going that way, Bitcoin is going by its own rules. And it's not the fiat currency that will go recession with the economy.

Gold has a finite supply because we can only mine the gold on earth and one day there won't be any gold to mine anymore this is why gold is considered an asserts, Bitcoin also has a finite supply as well so this assets can always be moving in an opposite direction of where the economy is heading. People are looking for where to invest their money and this assets are the best things for investment at the moment.

The recent pumps of the market is in response to the halving of Bitcoin reward that's been scheduled for 2024, since that's just next year investors are buying Bitcoin and this act will keep making the price to rise. The recession has nothing to do with the rise of bitcoin.

Gold and Bitcoin both have limited supply, which means that the price of it will go on as long as people find it valuable. There are a lot of people who think gold is valuable and it has been thousands of years like that, and some people worry that bitcoin will not be like that in the future because it's a tech thing and tech evolves whereas gold is gold, there is nothing to evolve.

But I believe that as long as we keep believing in bitcoin, then it can have a similar future, or at least in our life time which we should be careful about. So all in all, I believe it's not a bad idea to trust bitcoin to be higher, and reach to gold levels one day, not anytime soon, but it has the potential to help us during these type of periods.

Sayeds56

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Quote from: STT on July 17, 2023, 05:08:30 PM

Markets move ahead of current news, quite alot of the market is speculation of future prices so if a recession does register today it has to be unexpected in some way or magnitude.

It is true that markets determine the future price of assets in anticipation of economic events including recession. Regarding how Bitcoin would react to economic meltdown situation, it is yet to seen as it has never faced such situation since its inception in 2009. I think people are compelled to sell anything they posses during economic hardship to fulfill their basic needs of food and healthcare.

I think individuals and institutions will continue investing in Bitcoin as recession is a remote possibility. The world community has learned valuable lessons from previous recessions. Central banks of the countries like Federal reserve (FED) has range of options and tools to mitigate the risk of recession or recession like situation.

STT

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I wouldnt try to argue Gold has a finite supply but its limited by its wide distribution. In theory Platinum or similar level metals are more rare however the distribution is far greater in some parts of the globe which makes it unreliable for usage by all parts of the globe, it has its own bias. To obtain gold takes time and energy to do so, some people relate that to the process by which most BTC was acquired then distributed. Because of industrial advances far more gold was mined in the last century then ever before that when things were far more simple so we might presume more is available in future but also I think demand too. BTC is different in that supply is definitely falling.
Markets move ahead of current news, quite alot of the market is speculation of future prices so if a recession does register today it has to be unexpected in some way or magnitude.

Vaculin

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Winding down.

Bitcoin has nothing to do with CBDCs or with government’s fiat. If they fail in the process and drop their value, then bitcoin has also its own fate. And it’s fate is to continuously rise in the process, making its value 5x or 10x from its present. Most especially that halving is near, then bitcoin will create a very reasonable price everytime bitcoin halving is happening. Though I can’t assure everyone that what happened before when bitcoin halving is around will still be the same up to these days.

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Quote from: escanor7384 on June 28, 2023, 11:03:06 AM

Forgive my ignorance, I am very new to this space. I saw talks about CBDCs and that drew my attention back to cryptocurrencies. I thought the last bull run would be the last we would have seen of bitcoin ever reaching those heights so I stopped looking at the crypto space ever since.

We will see the halving getting closer from the four-year cycle process, although we cannot predict exactly when it will take place. Analysts have tried to make some predictions regarding the new price jump from the previous ATH and there may be many factors for this happening.

Quote from: escanor7384 on June 28, 2023, 11:03:06 AM

But now we have discussions understand dethroning the dollar and CBDCs, I am changing my mind about that, but I still find it fascinating that bitcoin is pumping in this economy right now. I am no means an expert in economics as you can clearly tell, would appreciate if anyone who had the knowledge could shed some light here. Always keen to learn. Thanks

I don't really understand about the essence of the question you asked? When talking about the world economy, the downturn is seen when recessions and inflation occur and these conditions do not always have a special relationship with the pumping or decline in bitcoin, because maybe other factors can also affect bitcoin's journey on the market.

In theory when inflation and recession occur, stability related to the value of fiat currency will depreciate, this occurs because of rising prices of goods that cannot be controlled. Bitcoin actually experiences conditions that are far different from fiat currencies and maybe you can see historically the process in the year the pandemic occurred, because that's where you will find answers to how bitcoin was able to maintain its value.

GeorgeJohn

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While bitcoin is pumping unexpectedly is because bitcoin its seen as asset and many people who invest in bitcoin always come up with a good news to influence others, and I believe that is while the market of bitcoin is getting productive, many people are looking for a source where their fiat currency will be a little bit difference from saves and that is while they are investing in bitcoin, and it's obvious that when investors come up massively to invest in bitcoin it triggers the acceleration of the price, so many people has find out bitcoin is an asset that it's the reason we are experiencing an increase in the market

umbara ardian

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Typically, in an unstable economic environment, investors seek safe assets like gold to protect their value and prevent the negative impact of inflation on traditional currencies. Bitcoin has shown us the potential to be an attractive asset during this period. Despite its high volatility, it is viewed as a safe asset unaffected by traditional market factors. The growth of Bitcoin has changed the opinion of many, as it is seen as a new and more effective approach to protect asset value during recessions and inflation. That's why people continue to invest in bitcoin despite economic inflation.

Yatsan

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We often see this whenever usd is falling. I think it is bwcause many people are having thoughts that cryptocurrencies has a higher tendency for a price increase such as with what happened last month.Quite of a domino effect as well wherein many people are now preparing for the next bullrun simply to earn profit from doing so. Eitherway, it is good to see that more people are putting their trust in this industry. There are even banks which are considering adoption of this technology. And if this would continue, we'd be closer to the day that manu institutions and people are using cryptos as a mode of payment.

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Quote from: Promocodeudo on July 17, 2023, 05:38:55 AM

When there is economic woos in any country, people start looking for alternative and trusted means for saving their fiat.

Bitcoin is pumping because people see it as a good asset, which has rekindled their hope towards a digital experience, thereby making them experience the most reliable and transparent way of storing their digital money safely and having access to it whenever they need it.

Bitcoin is currently experiencing more investment in it, because people have seen the innovation is, and the benefit that is attached to it.

This is on point explanation. Bitcoin is inflation proof because it has limited supply and not connected to unlimited fiat. The more fiat value become lesser the more Bitcoin price will grow exponentially. Bitcoin is the best asset to inflation because it will keep growing due to the increasing demand due to recession and limited supply that create scarcity for the price to pump hard.

Sayeds56

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Quote from: irhact on July 17, 2023, 02:56:21 AM

Gold has a finite supply because we can only mine the gold on earth and one day there won't be any gold to mine anymore this is why gold is considered an asserts, Bitcoin also has a finite supply as well so this assets can always be moving in an opposite direction of where the economy is heading. People are looking for where to invest their money and this assets are the best things for investment at the moment.

The recent pumps of the market is in response to the halving of Bitcoin reward that's been scheduled for 2024, since that's just next year investors are buying Bitcoin and this act will keep making the price to rise. The recession has nothing to do with the rise of bitcoin.

Indeed, Gold has infinite supply on earth and its mining will eventually become more challenging. It is also important to note that Gold has been used for centuries as medium of exchange, valued for its beauty and scarcity. In this perspective, it will be correct to assume that its value may potentially increase overtime. On the other hand Bitcoin also has limited supply, hence both Gold and Bitcoin are stores of value while Bitcoin has edge over Gold for fast and low transactions form one to another account.

The recent surge in crypto currencies market can be contributed to positive developments regrading spot ETFs, and downwards trend in inflation beside upcoming halving event in year 2024.

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When there is economic woos in any country, people start looking for alternative and trusted means for saving their fiat.

Bitcoin is pumping because people see it as a good asset, which has rekindled their hope towards a digital experience, thereby making them experience the most reliable and transparent way of storing their digital money safely and having access to it whenever they need it.

Bitcoin is currently experiencing more investment in it, because people have seen the innovation is, and the benefit that is attached to it.

Some people don't know what digital currency is, but because of the information they got from friends, colleagues, or social media, they decide to give Bitcoin a benefit of the doubt to know how true it is, and when they make try and it gives them what the want, they tell people and this, in turn, makes people withdraw their money from banks to invest in it, this currency depends on peoples participation, the more participants it attracts, the more it pumps, statically Bitcoin has more participants currently, and this has increased the demand too, so it will pump irrespective of any recession.

irhact

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Quote from: |MINER| on July 16, 2023, 03:57:38 PM

There are some things that don't get worse no matter how bad the economy gets. And as an example you can take gold as its price has only been increasing for ages. And I also think that bitcoin is the digital gold. And that's why even if the economy is going bad, Bitcoin is not going that way, Bitcoin is going by its own rules. And it's not the fiat currency that will go recession with the economy.

Gold has a finite supply because we can only mine the gold on earth and one day there won't be any gold to mine anymore this is why gold is considered an asserts, Bitcoin also has a finite supply as well so this assets can always be moving in an opposite direction of where the economy is heading. People are looking for where to invest their money and this assets are the best things for investment at the moment.

The recent pumps of the market is in response to the halving of Bitcoin reward that's been scheduled for 2024, since that's just next year investors are buying Bitcoin and this act will keep making the price to rise. The recession has nothing to do with the rise of bitcoin.

KingsDen

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Quote from: Unbunplease on July 16, 2023, 01:42:48 PM

Quote from: KingsDen on July 16, 2023, 03:04:06 AM

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Considering the possible imminent launch of BlackRock, the probability of bitcoin price growth amid the halving is very high. Talks about recession will give additional stimulus for growth. So the next six months to a year could be very interesting.

It could be very interesting indeed. I have never seen this type of hype accompanying a halving. I was scared before now that what if halving bull run fails. It Will indeed have so many negative consequences such as bitcoin will not be able to make a new ATH.

But with the preparation and readiness for halving by both individuals and organisations, it is going to be interesting and dramatic. I so much believe that most people will miss the timing. Maybe they will arrive earlier or later.

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Quote from: Unbunplease on June 28, 2023, 01:59:22 PM

When there are problems in the economy, people start looking for ways to keep their savings. Bitcoin has long shown that sooner or later the value of bitcoin recovers. That's the property of a protective asset. So people start buying bitcoin, and the price rises accordingly.

Indeed, Bitcoin is widely recognized as hedge against inflation due to its limited supply, that's why Investment in Bitcoin is considered an attractive opportunity for transforming one's life. therefore, we should accumulate more Bitcoins, Whenever it goes in significant dips. From a technical perspective, the current price of Bitcoin hovering around $30,257 is considerably higher than 21 days Moving average on technical chart. this is indicating bullish sentiment, and if sustains this price for few few weeks, it is likely to surpass $31,600 which is a strong resistance.

Topic: Why is bitcoin pumping when the economy is heading into a recession? (Read 738 times)