Topic: Why is bitcoin pumping when the economy is heading into a recession? - page 3. (Read 738 times)

There isn't going to be any recession in the world because inflation rates are getting better in many countries and that's why those people who are talking about inflation are mostly promoting it to create fear in the minds of the people. The CBDCs wont impact the price of Bitcoin as they will be a separate class of crypto-currencies and there impact will be minimum to none on Bitcoin or on crypto-market.

The Bitcoin isn't pumping because a pump would rise its price above all time high with any issue, but if we look carefully into the Bitcoin then we can be sure that it's slowly recovering from the dump it has faced due to some low class crypto-currencies and exchanges that were having poor class concepts and fraudulent activity. The Bitcoin's price has been slowly recovering from its low levels and it will be better in future.

I'm quite sure that in 2024's halving event would make Bitcoin cross the mark of $70k price range without any doubt and then the things will be once again good in the crypto space. The market will see a huge bull run this time and I'm very sure that investors will be highly attracted to crypto market this time. I'm also expecting that Bitcoin may reach price levels of $120k to $150k during 2024-2025, and if that happens then you'll see the boom in crypto market.

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, it's just some country no longer using USD for bilateral trade, they prefer to use their own currency.

Easiest thing to point out here this whole dynamic isnt new at all, its part of the trend for the last half century.   We do have high inflation and interest rates have also been raised, higher then they were prior near zero for a long time but none of that stops the fact that inflation is still higher then the basic interest rate.    The losses in the dollar remain ongoing, they havent been halted they continue at some pace.  We might be losing at a slower rate per month the value of the dollar but its still negative losses.
  BTC gains are quite modest, its mostly revising prior price action and will keep repeating that process while we clear up old volume of market orders and those involved in 2022 or earlier but have been left with some open trades they wish to close.  It takes time, the idea we'll go straight up is unlikely and we are fortunate that its correct time is taken to revise all pricing properly.

Are you sure bitcoin won't be affected by fiat or economy factors? So why was bitcoin severely dumped when inflation peaked, and the war between Russia and Ukraine caused an economic crisis? Bitcoin is part of this world, part of the economy, it has no value without any connection to our world. Bitcoin's price movements are the result of economic influences.

This is the sign that bitcoin halving is already on its way. Know that halving will put bitcoin into its best version of it so what we see and experience now is actually its good effect. And the current recession cannot even stop bitcoin from pumping as bitcoin has never been backed and supported by the government. So whatever the fate of fiat and our economy, bitcoin will always have a different path to take.

Why do you say "Last bull run" ?? Bitcoin isn't going anywhere mate, fyi cryptocurrencies are just getting started!!

And for as long as not everyone has internet access in some parts of the world, tells you technology that includes crypto still have room for growth so let's not give up just yet..the journey just got started!!

Nobody is dethroning anything here!

Let's factor in the fact that we are comparing two different things here, like say an orange 🍊  vs a tomato 🍅  these are running two different races!!!
So comparing bitcoin to fiat doesn't fit the profile as they are compliments to each other and not substitutes so expect these to coexist!

Bitcoin doesn't have a direct bearing of what our economies do and will flourish even in tough times because it's relying on the basics of supply and demand and this case demand that has been growing as crypto keeps becoming popular world over!

Exactly. Halving is fast approaching and bitcoin will definitely be in its best shape regardless of the down economy we have at the present. And take note that bitcoin will never be affected by the factors affecting fiat and the government’s economy. Though at some point, it makes the price of bitcoin to suddenly decline but rest assured that it will only be temporary and it will always surge high when the time is right.

What happens is that even if something is created with an intention people can always find other uses for it that its creator never imagined, fiat currencies are so out of control and governments are printing so much of them that people are looking for any way in which they can protect themselves, and bitcoin with its fixed maximum supply and its minting mechanism that it can let you know in advance how much of it will be around at any point in time are the perfect counter to inflation.

I don't really think Bitcoin was actually created to be a hedge against inflation because there wasn't inflation of this level at the time Bitcoin was created. It was created to be an alternative payment system and a store of wealth, but mainly to be a way for people to exchange finances without any central authorities, delays, and any kind of surveillance and stuff, though it is nowadays taken as an investment asset, it wasn't created to be like this.

Satoshi knew that Bitcoin and blockchain technology will either fail miserably or will gain significant success in the future, but I'm not really sure if he expected this much success for Bitcoin to conquer the whole world and become one of the most widely used investment opportunities in the globe.

For now I see that many investors, institutions and people are looking at BTC and have the belief that Bitcoin has the potential to reshape the financial landscape especially at this time and another good thing is that BTC also provides financial inclusion for those who do not have access to the traditional banking system. My assumption, the dollar is still there and it won't just disappear for no apparent reason.

Fluctuations occur due to the presence of buyers and sellers in the market and this always causes a decrease and increase in the price of Bitcoin based on demand and supply that always occurs at all times on Bitcoin. That is undeniable by many, but because Bitcoin has been such a fine asset over the years in the crypto space. So most people at this time still make Bitcoin a good investment and also an asset that is very well known among cryptocurrency enthusiasts around the world.

I think, the reason why Bitcoin can increase in price during a recession is because it is considered as a safe haven asset, an investment alternative, a protection against economic uncertainty, and can attract speculative interest. However, the crypto market, including Bitcoin, is highly volatile, and there is no guarantee that Bitcoin will always see a price increase during a recession.

Who said that the Bitcoin price is pumping? The current price is moving in the 25K-30K range. This isn't a price pump or a bull run. It's a pretty much normal price volatility. There were some bullish news about the Binance/Coinbase vs. SEC lawsuit, which helped the price to go from 25K to 30K. I don't expect a major price pump to 40-50K USD anytime soon. Maybe it will happen by the end of 2024 or the first quarter of 2025.
The crypto world is still relatively small compared to the global economy and the financial markets. It's theoretically possible for the Bitcoin price to grow in times of recession.
And by the way, the expectations of a massive global recession might be exaggerated.

It is normal for the price of bitcoin to move  up,no matter whatever challenge that bitcoin is facing. The halving is drawing near and there will be a pump in the price gradually so that it will hit a significant amount after the halving. The last bull run will never be the last bull run and we still have more bull run after that of 2025, because bitcoin price movement is cyclic and repeats itself after every four years based on history. Investors who has this knowledge always use it as advantage to make good profit. They buy when the price is dip and hodli till the bull run comes again before selling off some fractions or all of it.
OP, it is better that you think on investing than thinking that bitcoin price will remain bearish. Take advantage of the market now because we this might be the lowest price that you can buy bitcoin till after the next bull run coming up 2025.

In general, it is generally accepted that bitcoin was invented as an alternative to the current financial system, including as a protection against periodic economic crises. So when nation-state money is in trouble and inflation rises, bitcoin and other top cryptocurrencies tend to rise in value as people bail out of fiat inflation and put their savings into cryptocurrencies. But in these difficult times, it is not so pronounced, because the price of cryptocurrency is influenced by other factors happening in the world.
At the same time, it is unlikely that the price of bitcoin and other cryptocurrencies will grow strongly, because in the second half of the summer there is usually a seasonal price decline. But cryptocurrency often surprises us.

The thing with financial markets is that they are always forward looking, so being in a recession right now is not really affecting the prices of financial assets that much as long as the outlook for the future is strong. When the war in Ukraine started the world looked doomed at first and the outlook was very bad, leading to recessions in many countries due to the high energy prices and rising inflation. But now we are 1.5 years later and world is getting back to normal, people are relieved that the worst is behind us and will focus on the future. It is not only crypto currencies that are doing well, the big stock indices are all up this year too. On one side the economic might not look so good as it did 3 years ago, but with high inflation people need to invest their money somewhere. It's not really a option to leave our money in the savings account with 2-3% interest rate when the inflation rate is at 7-10%. So don't worry too much about the state of the economy in the first 6 month of the year, rather at the outlook for the next 6 month.

The institutional guys rely on advisors, just like everyone else. In fact, those who listen to the best advice, from as diverse and as many advisors they can afford, and then hedge all over with different advise, generally do the best.

Institutionals who think they can rely on their genius (aka luck) generally end up gambling, and losing.

See FTX and the cohort of 2022 Chapter 11s (and equivalents).

Surprisingly the fall of bitcoin they feared off didn't happen since many when the time recession happen many people find a opportunity to gain some money and to many people see a potential with bitcoin. It gain hype at that time this is the reason why we see it surviving even if there's ongoing crisis happened. Bitcoin performance change some perspective that's why we see this industry keep growing and many new people slowly gaining interest to try this for theirselves.

Not even the institutional guys know where the economy is actually heading. There was a large likelihood of recession in '22 Q4, and in Q1 '23, and there hasn't been a technical recession. I wouldn't be so quick to say that we're reading into a recession even though it's the speculative notion. Best way to describe the economy now is uncertainty. Perhaps a lot of the institutional guys don't know where to put their funds and pooling their resources into crypto to ride out a recession in case one does actually happen but that's as speculative as the recession talk.

Who knows?

Regarding Bitcoin's price increase and related peaks, the value of Bitcoin and other cryptocurrencies can vary wildly due to many factors, including demand from investors and users, news and related information, and even the general financial market. So it is not certain that the last bull run will be the last time we see Bitcoin reaching all-time highs. The cryptocurrency market is still very dynamic, and the value of cryptocurrencies can change over time. The fact that cryptocurrencies like Bitcoin "pump" into the economy is a dual aspect. Some argue that widespread adoption of Bitcoin and other cryptocurrencies could bring benefits such as increased online payments and financial freedom for everyone. However, there are also concerns about price volatility, money laundering, and illegal activity related to cryptocurrencies.

CBDC dethroning the dollar entirely could be challenging and depends on the boom and widespread adoption of CBDCs in the financial services and user communities. Countries need to consider important factors such as the safety, security and stability of CBDCs before it can be fully adopted.