Why is bitcoin pumping when the economy is heading into a recession? - page 5.

Swordsoffreedom

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Quote from: Nwada001 on June 28, 2023, 02:07:42 PM

I believe Bitcoin price is to some point not being moved by economy down fall, even when the world is experiencing some sort of global recession, Bitcoin seems to always be of a great resistance to some point. I believe this is as a result of most investors trying to pull their funds from the banking sector and other investments that are tied to economic growth and reinvest them in Bitcoin in order to escape inflation. When the demand for Bitcoin increases, there is always a higher possibility for us to see a positive price movement. Just as the ETF news has done to the price in the past few days.

Do you see any assets that can avoid the impact of the economy? Bitcoin is no exception because bitcoin can exist and work for our needs, and we are part of the world economy. Even a stable asset like gold cannot escape the economy's influence, a speculative asset like bitcoin will never escape the impact of the economy.
There is no evidence that many people are leaving the banks and transferring their money to bitcoin. If that happens, why hasn't the bitcoin price pumped and surpassed the old ATH yet? In the future, bitcoin may be an alternative to banking, but it will never be able to become a complete replacement for banking.

Wexnident

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Soo are we just going to forget the dump that Bitcoin had to 18k-ish a few months back? I hardly doubt there was a big influence here imo other than simple supply and demand. We wouldn't exactly see Bitcoin plummeting to the ground due to investors losing confidence in it, a lot of people still trust it (the dip to 18k was simply due to the ath bubble popping imo).

And even if we do consider recession, Bitcoin has been likened to assets like Gold that can avoid depreciation of fiat. It's been pretty stable as of lately as well with no big dumps (or pumps, sadly)

nesty

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Bitcoin has been seen as a safe haven asset similar to gold, during times of economic uncertainty. Investors may be turning to Bitcoin as a way to hedge against inflation and protect their assets in the face of market volatility. There have been growing trend of institutional adoption of bitcoin and other cryptocurrencies. This helped bitcoin as a viable investment option, which could be driving up demand. Some investors maybe buying because they believe that its price will continue rise, rather than any fundamental value. Maybe that is the reason why bitcoin is pumping though economy is heading into a recession.

panganib999

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Blackrock’s ETF was just approved by SEC, as well as a couple distinctions made by the commission regarding the fact that they do not see bitcoin as a threat and will therefore not take any counteractive measures against it in the future. All of this lead to bitcoin pumping in value from 23k to 30k in a span of days. Although I myself don’t believe thet this is enough a catalyst to start the next bull run, considering that we’re still pretty much stuck in a mire and the only saving grace we have in guarantee is the halving which will jot come at least until 2024. In any case, sustainable or not it’s still a spectacle and a welcome one a that too!

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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 by no means an expert in economics as you can clearly tell, would appreciate it if anyone who knew could shed some light here. Always keen to learn. Thanks

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.

komisariatku

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When economic conditions are not healthy, this is where investors need new instruments to continue to make profits. Bitcoin is the "considered" best alternative when the world is facing a recession. It's like during the Covid-19 pandemic, many economic sectors were paralyzed, but Bitcoin even reached a new ATH

While there's no guarantee that the same thing will happen, many observers speak that way. If you look at the history of bitcoin prices, bitcoin always reaches a new price every few years, even though there have been many price declines, bitcoin's achievements have been very good. That is the reason many investors are interested in bitcoin

In my opinion, bitcoin has become an investment instrument for many people. The profit you get from bitcoin can be more than just investing in any sector. You also don't need to be afraid that bitcoin will go bankrupt, bitcoin will never go bankrupt because nobody controls bitcoin. The bitcoin community is very strong and growing every day. That is a good reason to invest in bitcoin, because bitcoin will never go bankrupt

TimeTeller

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Quote from: dothebeats on June 28, 2023, 03:27:11 PM

It's barely pumping atm. It's been on this movement for a few weeks now and you can't say that it's performing really well since it just managed to stay on this level despite some selling pressure. It's more of a sideways market, not something that will really penetrate the ceiling and get the price to higher highs. It will take a lot more pressure on the buyer side of things for a bull run to happen. Right now, it's as dormant as it gets.

In any case, it is good that people are being optimistic on this market.
It has been like a year of waiting to reach this 30k level again, so I can agree that some people are happy about this.
Because if you look at the bitcoin chart, we are finally far from the 17k range and so far, we are heading upwards again.
It may not call for a celebration for this market, but people are getting positive vibes because of this development.

kawetsriyanto

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Quote from: flyingcarpet on June 28, 2023, 12:45:17 PM

Bitcoin is not yet pumped. It is still at a very low level in my opinion and gives a buying opportunity. I think you've heard of the halving and wondered what caused the recent spike. The reason is the approach of the halving and the expectation of a bull run. For a long time bitcoin has been in a stagnant state. So it hangs around 25-30k. In some periods, its value fell a lot, but it quickly recovered. Since the expectation of those who follow Bitcoin is that there will be a bull run in the next 1-2 years, the things mentioned may seem like bitcoin is pumping to you. We haven't seen anything yet. Bitcoin will have much better times.

Pump and dump always happened, but it may be not a very significant change. If you means bullrun season, sure it doesn't happen yet. You must know that the bullrun season is predicted to happen in 2024-2025. The significant change in Bitcoin price will come after Bitcoin halving happens, it won't happen in this year.

Bitcoin price already passed $30k, it even reached $31k a few days ago. And it looks like to survive above $30k, there is a possibility for a new resistance. So, you shouldn't mention $25k anymore, it was the price in several weeks ago. I believe Bitcoin price will stay above $29k-$30k if there is no much bad news again.

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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

I think the very first thing that comes to my mind is why you thought that bitcoin will never experiment another bull run? Its adoption through the world is still on the low side, so the higher the level of adoption the higher the price, it is that simple, and about why the price of bitcoin is going up? This is precisely because the economy is not doing well, people are realizing this is the case due to the high inflation we are experimenting and they are looking for ways to diminish those effects on their finances, and they are finding in bitcoin a useful tool to protect themselves.

livingfree

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CBDCs aren't yet on throne and are they will ever be on that? I don't think so but it's a normal talk to hear such about government backed projects like those.

One thing that's surprising for the new ones is that Bitcoin has always been unpredictable. We do got the beginning of the pandemic, it was also the start of Bitcoin bull run.

And if the recession is there, just as always being unpredictable. Bitcoin remains to be a good asset despite that it has plunged from the newest ATH that it got.

dothebeats

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It's barely pumping atm. It's been on this movement for a few weeks now and you can't say that it's performing really well since it just managed to stay on this level despite some selling pressure. It's more of a sideways market, not something that will really penetrate the ceiling and get the price to higher highs. It will take a lot more pressure on the buyer side of things for a bull run to happen. Right now, it's as dormant as it gets.

jacafbiz

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It is human nature, to hope that there is still more to come from Bitcoin, so we gamble on the future we want to see. The recent ETF news brings all these positive news that creates a bullish catalyst for the price with people believing it is a good thing for the price, though there is an opposite opinion to this that this big Tradfi will do what they did to gold price to Bitcoin plus the coming halving next year which is the most bullish thing that happens to Bitcoin. I believe barring any Covid like pandemics or war the worst is over for the price, all we need is for the world economy to get better

franky1

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smart people heard about "inflation" in early 2021.
that was the stage when smart investors would get out their investments to stock up on real world stuff like upgrading house, new furniture new gadgets and appliances before prices rose..
however now we are in the stage where people are wanting to save their wealth again, in places that offer good interest/ROI far better then the crap amounts banks offer. because if a bank only offers 2% savings interest. but inflation is 10% then thats a minus 8% value loss per year.. so no one wants to just hoard wealth in normal bank accounts

so now people are finding things to invest their wealth in now they are not in a buying home luxury's stage

ontop of this and more directly affecting bitcoin is that the hashrate has increased the baseline value bottom .. meaning instead of a $15k bottom its has moved above $20k which then supports the speculative market above bottom to be more secure above $25k

as for thinking the last ATH was the last ATH. you are missing a few dozen more to come over the next century.. they are every 4 years roughly. (usually a year after a bitcoin halving)
so expect more to come

Bitstar_coin

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A little percentage growth would seem like pump in the eyes of some people. Btc was in the 29k - 30k range before the sec allegations on coinbase and binance cause a drop on price so i can't really see this price movement as pump.

And as for recession, I didn't know some countries were already out of it, I thought most countries have been on for quite some time now, nothing imo has changed in the economy to indicate otherwise. If more funds are flowing into btc is because people probably tired of holding fiat with less and less value unlike btc.

Nwada001

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I believe Bitcoin price is to some point not being moved by economy down fall, even when the world is experiencing some sort of global recession, Bitcoin seems to always be of a great resistance to some point. I believe this is as a result of most investors trying to pull their funds from the banking sector and other investments that are tied to economic growth and reinvest them in Bitcoin in order to escape inflation. When the demand for Bitcoin increases, there is always a higher possibility for us to see a positive price movement. Just as the ETF news has done to the price in the past few days.

Unbunplease

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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.

avikz

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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

I won't use the word pumping. I would rather say bitcoin price is showing signs of stability. Also I wouldn't say that the world is going into a recession just yet. US could go to recession but that does not mean the world goes into recession. What happens in US, stays in US.

The market is actually gearing up for the upcoming halving. It is expected to happen in 2024 and the new supply of bitcoin is going to be reduced. So the price of Bitcoin is expected to increase in near future. The market is just gathering momentum now. This is not pumping.

Fortify

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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

As with anything in the crazy world of currency and stock markets, it can be pretty much impossible to pinpoint the factors that send it in a certain direction. If people think the future is looking bright again, or that they may be able to borrow money and invest it into this asset for greater returns - then it will start to pump. Bitcoin has now weathered quite a few storms and is still standing, so it shows that it has longevity. You have the super rich who have so much money that sometimes they feel like gambling on these new assets out of sheer boredom. Celebrities might be jumping back on to the hype train, or there might be a fresh exodus of money trying to leave Russia after the recent mutiny.

BIT-BENDER

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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.

Zaguru12

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

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

Not an economist either but it is base on one thing. Many investors during recession or inflation which is the leading indicator for recession actually look for assets that are stores of value like gold to buy just to have an hedge against the inflation, because most of the traditional currencies are mostly affected or devalued during this period. In the past people relate bitcoin as an highly risk asset so they don’t invest in it during this period but as bitcoin spreads people have actually seen that although the currency is volatile it is much better than the traditional currencies and an easy asset to buy than the usual gold, so they just go on to invest in bitcoin which result in the upward rise of the coin.

Although the above view is a general one this current pump can be accustomed to the fact that halving is fast approaching and many feel this is the right time to accumulate more before the halving which spear heads the major bull run in cryptocurrency.

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