Why is bitcoin pumping when the economy is heading into a recession? - page 4.

khiholangkang

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Quote from: Dr.Bitcoin_Strange on June 29, 2023, 05:18:43 PM

OP, The Bitcoin price hike is never measured just by one factor; there are several factors that contribute to the price movement of Bitcoin, and for this current uptrend, I don't think any have been identified as the serious cause, and there is still some possibility that the price could drop or keep trading high. Some people believe that the whales are the only ones responsible for pulling the market up or down. The whales are the heavy investors who buy huge amounts of Bitcoin, and any time they buy huge amounts of Bitcoin, the price is likely to rise, and any time they sell off a huge amount of Bitcoin, the market drops too. So, despite the state of the economic system, there are big players in the crypto industry who still have a huge amount to invest in Bitcoin and also sell it off when the price becomes favorable for their investment.

And yes, I agree with you that the increase in bitcoin cannot be seen from one factor, what happened to Bitcoin today because he found positive sentiments and market saturation due to prolonged side way, maybe Awhale had power to move prices, but also whale Alone and those Whale compete in trade, I do not see the line from there, but maybe that is one of the factors that can boost the price of Bitcoin.

I thought before that the recession would not happen, at least I thought it was delayed because if seen from the global economy at this time it began to improve and did not have the potential for recession, so I think the increase in Bitcoin prices is reasonable because the fear of recession has faded. IMO

justdimin

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Quote from: Jating on June 29, 2023, 06:57:30 AM

I guess by now we have the answer, despite where the economy is heading or if we are in a recession, the bitcoin market doesn't care. What investors did is to pump it hard because of the BlackRock news and it seems it has somewhat remain above $30k at the end of this month when everyone thought that June might be negative again.

So again, whatever happens to the global economy, if it goes worst, then bitcoin could be a hedge against recession as it will be seen as a store of value. Just like what happen in the pandemic in 2020, although we have the Covid-19 scare, still the price pumps so hard till 2021.

Bitcoin despite being known to be decentralized, I think it is still like the other financial market where it can be affected by the economic issues. I know recession is where a company is having a hard time so they remove some workers. Can be for temporary or permanent. People and companies have less money in hand to buy a Bitcoin so Bitcoin is supposed to fall down but it is surprising if it isn't.

Maybe there are other positive events which counter the recession. Haven't heard of the BlackRock news lately but I only heard that Microstrategy is buying more Bitcoins. This could be one of our lead. BTC is known to be a hedge but people shouldn't wait for the darkest time before they invest because they will likely fail.

gunhell16

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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

Probably, these things are happening because the Bitcoin Halving is approaching next year. We don't know if they did it on purpose or maybe they are actually preparing for the upcoming bull run next year.

Because if you notice that recently there are companies that have been closely related to Bitcoin or cryptocurrency and just a few days ago the SEC government also allowed new companies to register that are still related to crypto or bitcoin. Why is it? that's the question...

Wakate

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The question we need to ask ourselves is whether Bitcoin has any business with any country's economy? No!
Anything that happens to a country does not have anything to do with Bitcoin so we don't have to be blaming Bitcoin for something like this.
Inflation is one of the things that could affect a country economy which could restrain investors from coming to invest in such economy. When there less outflows of exportation, the value of a particular currency will reduce because that could halt the availability of dollar inflow. Bitcoin is not a universal currency and does not determine the price or standard of a country economy.

serjent05

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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

Bitcoin market moves through supply and demand, but sometimes through manipulation of powerful organizations that have either funds or authority. The current uptrend movement of Bitcoin is due to the positive sentiment created by the recent news about Bitcoin ETF being more likely to be approved by SEC. With the news, many investors jump into the Bitcoin investment so that they don't missed out.

Dr.Bitcoin_Strange

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OP, The Bitcoin price hike is never measured just by one factor; there are several factors that contribute to the price movement of Bitcoin, and for this current uptrend, I don't think any have been identified as the serious cause, and there is still some possibility that the price could drop or keep trading high. Some people believe that the whales are the only ones responsible for pulling the market up or down. The whales are the heavy investors who buy huge amounts of Bitcoin, and any time they buy huge amounts of Bitcoin, the price is likely to rise, and any time they sell off a huge amount of Bitcoin, the market drops too. So, despite the state of the economic system, there are big players in the crypto industry who still have a huge amount to invest in Bitcoin and also sell it off when the price becomes favorable for their investment.

Franctoshi

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One of the reasons why Bitcoin was created is because of the inflation hedge, so in such a time like this when the economy is heading towards recession, investors will run for safety, and Bitcoin, Gold, and real estate stand to benefit; there will investors be running to invest their money. Bitcoin in the past has proven to be a store of value when you compare its performance over a couple of years with other Assets.

kryptqnick

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There's no reason why the 2021 bull run should be considered the last. When Bitcoin went down in 2018, many people claimed it'll never go back to $20k, and just a few years later $30k is considered not such a great price.
The question of the relationship between Bitcoin and the traditional economy is complex. When a major negative event happens, Bitcoin can go down with the rest of the market. But it can also recover faster than other areas and even go into the bull market when the rest of the economy isn't doing great.
It's still unclear whether the economy is already recovering or just heading deeper into recession, but Bitcoin is simply independent of these processes. So it can go up or down, regardless of where the global economy is generally at.

FrozenBit

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Some of the links between the CBDCs of many countries recently and the crypto market I think is just an adaptation and reconciliation of the traditional economy (fiat's limitation) and can also turn the market crypto into a separate market like gold or stocks. Evidently some of the arguments I've heard about crypto before are like crap on the internet, after five years what it does here is not just about the economic market, and looking at the technology side clearly. We easily see many products that really bring applications to life. Regarding price fluctuations, as some points of view, to me, the market is still small and volatile, so it's not really clear when we just think that the economic downturn will limit the area of life, so this is quite normal.

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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 the last bull run, I don't think so. There is more bull run that will come after tbe last one but you should know that the exact time is not assure but we all know that the time frame is always between pre halving and post halving, all coins pump between that frame and that's when everyone jumped into the markets and then we will see another news everywhere.
Bitcoin and economic was somehow related during Corona period because there was corellation between S&P500 and Bitcoin back then but I think their shoulder relationship is over, as Bitcoin halving approaches, by its virtue it should pump whether the economy is stable or not, so sit tight and don't buy into CBDC speculations or dominating the digital currency.

Jating

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I guess by now we have the answer, despite where the economy is heading or if we are in a recession, the bitcoin market doesn't care. What investors did is to pump it hard because of the BlackRock news and it seems it has somewhat remain above $30k at the end of this month when everyone thought that June might be negative again.

So again, whatever happens to the global economy, if it goes worst, then bitcoin could be a hedge against recession as it will be seen as a store of value. Just like what happen in the pandemic in 2020, although we have the Covid-19 scare, still the price pumps so hard till 2021.

Wiwo

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Quote from: WatChe on June 29, 2023, 05:16:34 AM

Bitcoin is not anti-inflation rather it has controlled inflation, the 20 million total bitcoin will slowly join the circulating coins. TBH right now there is no one-to-one comparison between Bitcoin and the real world financial system that is based on Fiat. The pumping of bitcoin and global recession are not directly linked together. The current bitcoin bull run is mainly because of blackrock ETF that is very soon to be launched while global recession comes and disappears after sometime, we have to wait and see about how long current recession last.

I agree with you because the recession has faced and we have what we call post-recession economic decline, and every country that has gone through the recession will have to face that challenge, the post-recession economic crisis. Worst than the first stage of recession and this has affected most countries' economy.

Just like you said let's wait and see what becomes our reality with bitcoin ETF which is around the corner whether it ends like the other hypes that have come up before because we don't know what the reaction of bitcoin users will be and whether they will be willing to buy in into the idea of third-party custody which is the exchange.

WatChe

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Quote from: Wiwo on June 28, 2023, 05:45:41 PM

The fact is that bitcoin is gaining momentum right now and at that, the entire economy is battling with inflation and the currency is becoming worthless, and for that it very clear to all to know that bitcoin has become the only store of value same like gold but in a digital format, so since bitcoin is anti-inflationary in nature, it then becomes clear to all to know that while the economy battle with recession and other economic problems, bitcoin is busy making and breaking new ground.

So there are no other economic terms that we can use to explain this other than Bitcoin being an anti-inflationary currency, and since Bitcoin have a calculating supply of 21/million it then becomes hard for it to be inflated.

Bitcoin is not anti-inflation rather it has controlled inflation, the 20 million total bitcoin will slowly join the circulating coins. TBH right now there is no one-to-one comparison between Bitcoin and the real world financial system that is based on Fiat. The pumping of bitcoin and global recession are not directly linked together. The current bitcoin bull run is mainly because of blackrock ETF that is very soon to be launched while global recession comes and disappears after sometime, we have to wait and see about how long current recession last.

Onyeeze

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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.

That should be true when ever people notice that their is a crisis or recession in economy they began to go the place that will be favourable for them to have recovering or back their money during the recession and they are seeing bitcoin as asset to put in their money so that it their money will be valuable in for of economy recession, but bitcoin is not an asset that always prosper and I have seen in that because the market is not always flourishing as expected, so what do we think that make a bitcoin asset and why people is afraid of economy recession and focus on bitcoin investment as an asset that can rescue them during economic recession

killerfrost

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There is a lot to be said about news issues that affect prices, but my observation is that most markets have their own volatility, as the title says, I don't see the point here, Since the crypto (btc) market has been volatile ever since, I think we will all feel that it is small in size given its high volatility in the news.
Regarding some of the hyped concepts like CBDC, I don't have too much thought about it but I understand it has been and is still evolving, as an investor I think the story of this will really bring. Whether the value is positive or not takes time to compare, because actually I have been with a number of fields related to this field and feel that it is more exaggerated than the price they offer.

Kakmakr

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The theory is that when the Fiat financial system is in a recession or if there are problems in the Fiat financial system, then investors and speculators are looking for alternative investments or safe havens. Now, I am not saying that Bitcoin is a good store of value, but it is decent enough for those investors to risk investing money into it.

We saw this happening in countries like Greece and Cyprus and also in Zimbabwe, when they were faced with problems in their economy. (Hyper inflation scenarios) Wink

rat03gopoh

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I think you capture the wrong moment about Bitcoin pumped where it happens when the world is out of the recession (there is a reverse conclusion in your perspective). Or you're willing to at least tell us in what country your base, which is likely your country is included in the lowest ranking row which is the latest reconstructing the economic crisis.
Plus, CBDC has nothing to do with Bitcoin prices.

mindrust

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The FED never did and never will stop printing money. Even when they were burning USD, they were also printing at the same time. The US has so much USD debt and so little export (compared to their debts)… that means they can only pay their debts if they print money. And we have seen this with the last “debt ceiling” debate. They simply have no other choice. It is either print or go bust and you know what? Printing money is a way to reach bankruptcy too. It is just a slower process.

Where is bitcoin in all that? Bitcoin has a hard cap on the supply, USD does not. It is only natural for bitcoin to go up against the dollar.

adaseb

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It’s not only Bitcoin. Have a look at the nasdaq index and see how close it is to the ATH. Why would it be pumping when we are suppose to be in a recession?

Well nobody knows when the recession will start. Could be another year. The yield curve inverted a long time ago and still no recession. I would say until we get a confirmed recession then Bitcoin and stock markets will keep rallying.

Despairo

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What's recession? I don't see any recession, the fact is the current economy is opposite than what you and other people are expecting.

The recent of Bitcoin pump caused by BlackRock's Bitcoin ETF was proved by SEC, however the price might slowing down after next few weeks if there's no big good news for Bitcoin. I wouldn't expect any other pump in this year because the halving will happen in the next year.

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