Why is bitcoin pumping when the economy is heading into a recession? - page 2.

YUriy1991

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Quote from: BIT-BENDER on June 28, 2023, 01:03:23 PM

Firstly it depends on the economy you are talking about, also the economy of many nation did not just start to go on recession today, economy like mine has been in recession for a very long time now.

But the truth is that the rise and fall of Bitcoin is certainly not determined by the state of other nations economy. Bitcoin is independent of all that and I can understand that it's a better explanation to say people are scared of their financial future with the recession and now deciding on rather holding Crypto-currency instead.

It may sound common that the price of Bitcoin is influenced by many factors. including the birth of positive or negative market sentiment, regulations, and others. Referring to what you said above, the price of Bitcoin is not determined by the state of the economy of other countries, but it is not certain that Bitcoin will always perform well during a recession. Btw, this is not a prediction, but I think there is a possibility that BTC will move down to the 28k - 29k area in the near future, maybe in the next 1-2 days.

mindrust

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Quote from: hannahB4 on July 16, 2023, 01:59:21 PM

The economy that you said in a recession might depend on the country and economy that you meant. I don't think bitcoin price depends solely on the economic condition because if it does it could have become zero as some countries have been in recession for up to five years now.

In other words, just like stocks, bitcoin is not the economy. Bitcoin (and stocks) can go up and down freely based on supply and demand. Sometimes there are too much supply and so little demand so bitcoin starts to go down, sometimes it is the other way around. There are always big whales that want to manipulate the markets. Their main goal is to make money of course. These people don't care about the economic downturns.

FinneysTrueVision

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Mainly it's due to speculation. If an ETF gets approved it could mean there will be greater interest from institutions that want to invest in Bitcoin. A stamp of approval from the SEC would make it harder for regulators, and Bitcoin detractors in general, to make an argument that Bitcoin is bad and we need to pass laws in order to "protect investors".

The halving is also near. Fewer coins mined combined with greater desire from investors is the classic supply & demand scenario.

usekevin

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When the economy get bad,some large money holders will inverse their money in crypto currency.So the demand for the bitcoin in cryptocurrency will increase.This leads to the demand pull market and the price of bitcoin will automatically increases.This is main cause for the bitcoin price pump at the bad economic situation.The fiat value is stable and crypto currency market will continue to increase with the increase in price of bitcoin.Because market depends on the bitcoin since bitcoin ruling current crypto currency market.

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Quote from: hannahB4 on July 16, 2023, 01:59:21 PM

The economy that you said in a recession might depend on the country and economy that you meant. I don't think bitcoin price depends solely on the economic condition because if it does it could have become zero as some countries have been in recession for up to five years now.

And Bitcoin is also independent of users from several countries that have been in recession for up to five years. Because in general Bitcoin has been used by many people around the world which includes almost all countries in this world. So that Bitcoin will also not easily become zero if there are still citizens who continue to use it regardless of the ongoing economic recession. Right now there are indeed several influences that can cause Bitcoin to crash in the market, that is negative news about Bitcoin, the bad economy also includes excessive panic among large investors.

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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.

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The economy that you said in a recession might depend on the country and economy that you meant. I don't think bitcoin price depends solely on the economic condition because if it does it could have become zero as some countries have been in recession for up to five years now.

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

The economy of every country mostly the third world countries are heading to recession and they have been in this lane of recession for so long and I can say that are used to it and that is why it doesn't affect their investment ability.
Bitcoin is known largely for resisting inflation but most times it has been proven that bitcoin is very sensitive to the happenings in the economy.
For pumping when then economy is not fine should be attributed to the halving rumour and halving that is approaching. Halving has the ability to form a fundamental that will defy the current economic arrangement.

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.

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Quote from: yhiaali3 on July 15, 2023, 11:37:25 PM

The rise of Bitcoin during this difficult economic situation has many factors. There is a sure relationship between the economic situation and Bitcoin. Inflation is the main reason why people turn towards gold and Bitcoin.

Bitcoin has proven itself to be a successful investment in the long run, a good store of value, and a means of hedging against inflation, so we often find people resorting to buying bitcoin when the value of fiat decreases to preserve the value of their assets.

We also see now the tendency of major companies to invest in bitcoin, which enhances people's confidence in bitcoin as a store of value and a successful investment in the long term.

Firstly, I don't see bitcoin being pumped as the economic situation gets tougher, the world economy falls into crisis when inflation peaks in 2022, and bitcoin gets dumped more severely than pumped. Second: bitcoin also failed to fulfill its role of hedge against inflation as inflation rose, bitcoin and other assets suffered while the DXY index consistently hit new ATHs last year.

Although bitcoin has recovered from $17,000 to $31,000 and other financial markets have also recovered, it is because inflation has eased, the economy is past its worst, and we are on the way to recovery. From what I see, bitcoin is just a speculation like many other assets, it is not yet a store of value, or a safe haven, as many people say.

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

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

The economy of every country mostly the third world countries are heading to recession and they have been in this lane of recession for so long and I can say that are used to it and that is why it doesn't affect their investment ability.
Bitcoin is known largely for resisting inflation but most times it has been proven that bitcoin is very sensitive to the happenings in the economy.
For pumping when then economy is not fine should be attributed to the halving rumour and halving that is approaching. Halving has the ability to form a fundamental that will defy the current economic arrangement.

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Quote from: Captain Corporate on July 15, 2023, 04:50:18 PM

All in all during recession bitcoin is one of the best things to hold and right now we could hold it as much as we want to, and wait for the storm to pass as well. That could work if the bitcoin price goes up before and after halving as well, that would actually work very well.

Bitcoin can't hold strong during recession, in recession everything will be affected starting from cryptocurrency to other businesses. Fiat currency are the best thing to hold during recession as they don't lose value and when the recession is over you can use your fiat currency to buy assets such as Bitcoin and other valuable assets. Holding Bitcoin during recession isn't a bad idea but if you're holding it thinking it won't lose value like other things, that won't happen.

During recession there's FUD in the market and fud is the reason Bitcoin dumps because investors are uncertain how the market will react to the recession and investors would want to secure their wealth by holding stablecoin, after the recession Bitcoin will recover quickly.

yhiaali3

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The rise of Bitcoin during this difficult economic situation has many factors. There is a sure relationship between the economic situation and Bitcoin. Inflation is the main reason why people turn towards gold and Bitcoin.

Bitcoin has proven itself to be a successful investment in the long run, a good store of value, and a means of hedging against inflation, so we often find people resorting to buying bitcoin when the value of fiat decreases to preserve the value of their assets.

We also see now the tendency of major companies to invest in bitcoin, which enhances people's confidence in bitcoin as a store of value and a successful investment in the long term.

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If you are anticipating a bull run is about to start, you might be wrong. If the economy is going into recession, investors always look for alternate investment opportunities, and the possibility is that investors might have been interested in Bitcoin. Another reason is that whales are seeking exit liquidity to sell their bucket. The market is rallying to lure in more retail investors.

Captain Corporate

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People basically wants to save their money in a secure location, that's it. I mean during recession keeping it at stocks makes no sense because companies will make less profit, or even maybe no profit at all, so buying stocks makes no sense, buying gold rarely makes sense but that could be done truth be told, keeping it at fiat makes definitely no sense neither, the returns are terrible and no matter how high or low inflation is its still there so you lose value. All in all during recession bitcoin is one of the best things to hold and right now we could hold it as much as we want to, and wait for the storm to pass as well. That could work if the bitcoin price goes up before and after halving as well, that would actually work very well.

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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

In an ideal scenario bitcoin will always go up if the traditional markets show dumps because dumps are signs of low confidence in market which means people are putting money somewhere else which can be bitcoin. But honestly we have seen some times bitcoin is trending very same as the stock market only. Like in covid 2020 Feb mar market fell like there is no tomorrow and so did the stock market but eventually it raised up like it'll achieve it's all old targets easily.

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Quote from: icalical on July 11, 2023, 07:52:08 PM

I don't think Bitcoin is pumping right now, it just had a little bounce, and now is going sideways again. Tho I really hope Bitcoin will start pumping soon since halving is s about less than 1 year from now. Other thing about your question, I don't think 'dethroning' USD has anything to do with Bitcoin and Crypto, -snip-

Yesterday, Bitcoin almost reached $32k. I think it is quite good bounce, Bitcoin can increase from $30k to $31k. However, I agree that it was still a little increase, we expect bigger increase for Bitcoin price. Sure, halving should become the reason for Bitcoin to increase significantly, but the big increase probably happens after the halving. If we learn the previous bullrun, the significant increase will be in 2025.

I agree that Bitcoin price growth has no correlation with the USD or the economic situation. We still remember that even if we were in the pandemic in 2021, but Bitcoin still can create its ATH. So, the bullrun probably happens although we may experience a recession.

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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

You can’t expect that while economic recession is going on, bitcoin price will follow. That’s certainly a wrong mindset. Bitcoin is never controlled by the government or the country’s economy, so whatever happened to them, bitcoin will always stick to its cycle and will definitely reach a higher value not only because halving is near, but because bitcoin is destined to grow and increase its value overtime, and not that it will permanently dropping its price just like with some altcoins that eventually turn dead coins.

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I think most people here do like to be a prophet of doom, it is not written in stone that economy is heading to recession, I suspect we will likely see a change in economic policy this quarter, the election is fast approaching and you won't want to be a president that drives the economy to recession because what are you going to campaign with. The free money is coming soon, this would have started but they need to try to bring the inflation down first which is the main concern the FED has for now

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Quote from: tjtonmoy on July 15, 2023, 01:53:45 PM

Bitcoin has proven many times in the past that it is the most resilient against economic crisis and inflation. Many see it as an asset that is called "Digital Gold". Having a limited supply makes Bitcoin a perfect weapon to fight against the inflation problem. Also, big companies are showing more interest in Bitcoin recently. They are using Bitcoin as an investment strategy to grow their share value.

Maybe it will make no sense right now. But that does not matter here. If you are a believer, then keep on hodling. The next halving is coming soon. That will also bring a positive vibe to the market soon. So ignore all these small details and look at the bigger picture. The bulls will be back again.

When a country is in a recession, money depreciates rapidly. Therefore, people start looking for relatively safe and highly liquid assets. Bitcoin is versatile, it does not depend on government laws, and it can be bought and sold off-exchange. Here are some factors that contribute to the rise in the price of bitcoin

tjtonmoy

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Bitcoin has proven many times in the past that it is the most resilient against economic crisis and inflation. Many see it as an asset that is called "Digital Gold". Having a limited supply makes Bitcoin a perfect weapon to fight against the inflation problem. Also, big companies are showing more interest in Bitcoin recently. They are using Bitcoin as an investment strategy to grow their share value.

Maybe it will make no sense right now. But that does not matter here. If you are a believer, then keep on hodling. The next halving is coming soon. That will also bring a positive vibe to the market soon. So ignore all these small details and look at the bigger picture. The bulls will be back again.

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