Why is crypto going up after the news of being in a recession?

Oilacris

hero member

Activity: 2996

Merit: 609

Quote from: BRINIRHA on August 04, 2022, 12:10:10 AM

people are starting to realize the benefits of bitcoin and the freedom it offers. because even today the local currency is affected by inflation and subsequently by a recession as the value of the euro continues to decline towards the dollar.

That's the reality or in connection when it comes to inflation which is something a very common global problem although it might sound that it is on the negative side of things but still turns out that it is still mainly supported by most people rather than on sticking crypto which we know it's volatile and not regulated which would always put up those doubts and less confidence on engaging through it.

Speaking with sentiments or fundamentals then it isn't something new that we would neither see that it gives out significant effect or not on overall market price and condition.
So it's better to make yourself prepared and wary.

jeha2015

full member

Activity: 548

Merit: 167

Play Bitcoin PVP Prediction Game

Quote from: feeling sound on July 31, 2022, 04:25:02 AM

The crypto market definitely behaving in mysterious ways lately. It seems like we turn from bullish to bearish and vice versa on the daily.

I find it a bit odd that the market is pumping on the news of a recession.

Is Bitcoin and crypto proving it really is a hedge against the devaluing of the dollar, or is the fact it was only a 75bp hike until September that maybe caused the case for optimism?

Do you guys Believe in this pump or is it just temporary until another leg down?
I personally am not sure so I'm just slowly DCAing in to my favourite projects.

so far i know , if we are in recession in my opinion central bank will not increase their rate to attract economic cycle. It designed to make people prefer to use their money into business. If any possibility to increase rate , most of citizen prefer save their money into bank and ofcourse due this reason sold their stock or even crypto. We see many times when bank rate increase crypto or stock drop. But in last time we didnt see it because its followed by mines GDP which is delete possibility to increase bank rate next month. Market give postiive response with it by buying all cheap assets.

Cookdata

hero member

Activity: 910

Merit: 875

Not Your Keys, Not Your Bitcoin

I know that the crypto market is dynamic but something seems off as I have observed lately. Ever since bitcoin has been making a lower low on daily and Weekly timeframe, no single good news has happened that is so strong to change the way of making to being bullish. I remember the early days of last year when the bull run started, it was good news every month back to back, and the market was so super high that there was no single negativity on the market but today, it is now the opposite. If they didn't steal money from a decentralized protocol, they will become insolvent, wallets hacked, tokens being swept from a pool and many more. I just felt that this is not normal, either it is deliberately done to scare small retailers or pure manipulation to tank the prices.

NeuroticFish

legendary

Activity: 3668

Merit: 6382

Looking for campaign manager? Contact icopress!

Quote from: BRINIRHA on August 04, 2022, 12:10:10 AM

people are starting to realize the benefits of bitcoin and the freedom it offers. because even today the local currency is affected by inflation and subsequently by a recession as the value of the euro continues to decline towards the dollar.

It would be overly nice if this would be real. But unfortunately it's not. People are far from realizing the full benefits of Bitcoin and most of the few who are interested in bitcoin are only in for the profits.
I wish that people would start realizing how evil the fiat is, I wish that people would realize how important their freedom and privacy are. But sadly we're not there yet.

The "going up" was just a small and normal fluctuation, that's all, unfortunately.

BRINIRHA

sr. member

Activity: 672

Merit: 265

Blackjack.fun

people are starting to realize the benefits of bitcoin and the freedom it offers. because even today the local currency is affected by inflation and subsequently by a recession as the value of the euro continues to decline towards the dollar.

Gyfts

legendary

Activity: 2744

Merit: 1512

It's not really going up. Keep in mind, Bitcoin has not yet faced a global economic crisis (I don't consider COVID-19 an economic crisis as it was artificially created and then artificially resolved through re-openings/money printing). Changes in the U.S. economy aren't necessarily indicative of a the global economic status, nor are small changes in Bitcoin's price directly correlated to the state of the U.S. economy. And to be clear, the recession effects usually lag. Once companies begin to stop hiring or lay off workers, that's when the global ramifications happen. Large corporations beginning to slow their economic activity is what creates a snowball effect. Perhaps that's when BTC's price can really be analyzed within the context of a recession.

Hydrogen

legendary

Activity: 2562

Merit: 1441

The US dollar is pegged to the US economy. Negative news of the US economy, generates a negative outlook of the US dollar.

Which in turn makes inflation protected assets like commodities, precious metals and bitcoin more attractive investments.

This is the price trend and history of bitcoin. Up until it became an instrument of speculation by mega trading whales. At which point the price trend of bitcoin shifted and became correlated to US stocks. An anomaly which has become somewhat normalized with all of the new faces in crypto who don't know the past history.

Long story short. Inflation protected assets are in greater demand during times of recession. It is mainly rampant speculation in BTC which has recently shifted that trend.

Lambe Ndumble

member

Activity: 569

Merit: 10

Cryptocurrencies do not care about any conditions, even when many banned from large countries such as China Cryptocurrencies performance continues to improve, strong and large communities are the key that market law works effectively.

dansus021

copper member

Activity: 1988

Merit: 905

Part of AOBT - English Translator to Indonesia

for now on im just wait and see the news is all over the place since beginning of war and covid and yes we can see that bitcoin react to it, for now the bitcoin still at 23K price which is good rather but currently still testing at local support zone if we break that zone we might see 22K or 20K

Paul Pogba

member

Activity: 1232

Merit: 12

Cryptocurrencies always make something unique, when the economic recession actually cryptocurrencies performance continues to improve, the same thing happened in the last few years, when a pandemic occurred and made many types of investments die but cryptocurrencies continue to skyrocket, this proves that the concept of decentralization is very effective and makes investors more confident .

TimeTeller

hero member

Activity: 2716

Merit: 588

Quote from: justdimin on August 02, 2022, 01:15:34 PM

Quote from: Argoo on August 01, 2022, 08:43:36 AM

In general, this is how it should be. After all, the cryptocurrency was created as an alternative means of payment for the current payment system of states, which is subject to periodic inflation. Cryptocurrency is not tied to the fiat of states, although it has a price in fiat. Therefore, it would be quite reasonable if, with inflation rising, as it is now, people turn to cryptocurrencies to protect their savings.
It is possible that a small increase in cryptocurrency is provoked by an increase in inflation in most states. How sustainable this trend will be remains to be seen.

This is understanding that if there is a recession then there won't be any place left to make any profit and that is why people are working their way into crypto because they know this is at least one of the places they could protect their wealth.

Gold has been doing this for thousands of years but that doesn't change the fact that you can't really make sure that gold will do exactly what you think it will do. That will help people to come to terms with bitcoin which would be making a lot more profit to you and that should be good enough. I personally do not feel the same way, but at the very least I know crypto is much better than any other option out there.

In crypto, or with bitcoin alone, even with this bearish period, one can still make profit.
On a daily basis, how many times we can observe the up and down movement, even with little movement, someone can make a profit.
But one should be careful in executing the trade, because one mistake, and all those small profits can be wipe out with one loss.
But it goes to show that you can definitely make a profit even in this period.

Lanatsa

hero member

Activity: 2786

Merit: 646

Quote from: justdimin on August 02, 2022, 01:15:34 PM

Quote from: Argoo on August 01, 2022, 08:43:36 AM

In general, this is how it should be. After all, the cryptocurrency was created as an alternative means of payment for the current payment system of states, which is subject to periodic inflation. Cryptocurrency is not tied to the fiat of states, although it has a price in fiat. Therefore, it would be quite reasonable if, with inflation rising, as it is now, people turn to cryptocurrencies to protect their savings.
It is possible that a small increase in cryptocurrency is provoked by an increase in inflation in most states. How sustainable this trend will be remains to be seen.

This is understanding that if there is a recession then there won't be any place left to make any profit and that is why people are working their way into crypto because they know this is at least one of the places they could protect their wealth.

Gold has been doing this for thousands of years but that doesn't change the fact that you can't really make sure that gold will do exactly what you think it will do. That will help people to come to terms with bitcoin which would be making a lot more profit to you and that should be good enough. I personally do not feel the same way, but at the very least I know crypto is much better than any other option out there.

Doesnt really matter on how long and how big you would be making and speaking with gold then it does really give out that security at least if we do compare with bitcoin or crypto as a whole which isnt surprising but

since people do really love to see quick profits in a short span of time which gold cant really give that opportunity then this is where people do really pour up soo much interest with crypto which isnt something surprising.

We know that crypto market is highly reactive when it comes to market news and events related thats why it wont really be that shocking thing and make out presumptions on possible movement.

justdimin

hero member

Activity: 2968

Merit: 670

www.Crypto.Games: Multiple coins, multiple games

Quote from: Argoo on August 01, 2022, 08:43:36 AM

In general, this is how it should be. After all, the cryptocurrency was created as an alternative means of payment for the current payment system of states, which is subject to periodic inflation. Cryptocurrency is not tied to the fiat of states, although it has a price in fiat. Therefore, it would be quite reasonable if, with inflation rising, as it is now, people turn to cryptocurrencies to protect their savings.
It is possible that a small increase in cryptocurrency is provoked by an increase in inflation in most states. How sustainable this trend will be remains to be seen.

This is understanding that if there is a recession then there won't be any place left to make any profit and that is why people are working their way into crypto because they know this is at least one of the places they could protect their wealth.

Gold has been doing this for thousands of years but that doesn't change the fact that you can't really make sure that gold will do exactly what you think it will do. That will help people to come to terms with bitcoin which would be making a lot more profit to you and that should be good enough. I personally do not feel the same way, but at the very least I know crypto is much better than any other option out there.

Argoo

full member

Activity: 2254

Merit: 223

#SWGT PRE-SALE IS LIVE

In general, this is how it should be. After all, the cryptocurrency was created as an alternative means of payment for the current payment system of states, which is subject to periodic inflation. Cryptocurrency is not tied to the fiat of states, although it has a price in fiat. Therefore, it would be quite reasonable if, with inflation rising, as it is now, people turn to cryptocurrencies to protect their savings.
It is possible that a small increase in cryptocurrency is provoked by an increase in inflation in most states. How sustainable this trend will be remains to be seen.

LastKiss

sr. member

Activity: 2156

Merit: 251

Binance #Smart World Global Token

Quote from: feeling sound on July 31, 2022, 04:25:02 AM

~snip~
I find it a bit odd that the market is pumping on the news of a recession.
Is Bitcoin and crypto proving it really is a hedge against the devaluing of the dollar, or is the fact it was only a 75bp hike until September that maybe caused the case for optimism?
Do you guys Believe in this pump or is it just temporary until another leg down?

Well in my place a lot people choose gold over crypto since gold is safe haven for them, but in crypto this low price is an opportunity for us to accumulate more since this price probably won't be seen again in the future so your DCA strategy is the best option right now. There's still a lot of FUD about crypto out there and not many people are bullish on crypto so I don't think this year we will see a great result.

Smack That Ace

legendary

Activity: 1750

Merit: 1094

Assalamu Alekum

Quote from: Vaskiy on July 31, 2022, 07:05:25 PM

~
I see this to be the reason for the price of bitcoin going high amidst the ongoing recession.

Bitcoin didn't go high, it was just a slight rally and was seen as more of a price trap. Not only bitcoin but other markets also rallied after the Fed rate hike announcement, simply in my opinion the market ran before the official news because the previous predictions also suggested that the FEC will increase 75 points. The cryptocurrency market is still closely correlated with other markets, it is already a part of the financial world, no longer stands apart.

sunsilk

hero member

Activity: 2884

Merit: 620

Quote from: fullhdpixel on July 31, 2022, 05:58:29 PM

Quote from: sunsilk on July 31, 2022, 09:09:08 AM

I understand all of those questions popped on your mind but this is the normal market for crypto that we have. Whether we have recession or none, we'll always get to see the crypto market pumping and dumping.

With good or bad news, the market will always react at both sides, positive and negative, decrease and increase. You should get used to it when you see it go from side to side.

There's really nothing to think about it that much when you see it fall and rise.

Crypto works in two cycles so once one of the side is done then it's now turn for the other side to shine and it will happen no matter what. It's true that news do have an impact on the price though not too often and not all times the effect are strong but sometimes the effect can also be small. Maybe this is what's happening lately. It's also possible that the effects are just delayed like last time where there a news about whales buying cryptos.

I wonder why the crypto price didn't move upwards but the effect starts kicking in later on. A lot of people wonder what is the cause of it but I didn't. I tell them that it was because of the news that we have last time.

Sometimes good and bad news do impact the market too late or almost no effect at all. That's why you have to balance your judgment in the market if you see it going according to your analysis whether it's with technical analysis or fundamental analysis.

These cycles are happening no matter what we do. This time, we don't know how long the market will be quite at the bottom. Although honestly, this bottom doesn't seem to be a very low marking if you've been here for a long time.

Vaskiy

legendary

Activity: 2618

Merit: 1105

Tontogether | Save Smart & Win Big

Quote from: sheenshane on July 31, 2022, 06:58:32 PM

Quote from: feeling sound on July 31, 2022, 04:25:02 AM

Do you guys Believe in this pump or is it just temporary until another leg down?
I personally am not sure so I'm just slowly DCAing in to my favourite projects.

You already answered your question here.
No one can tell us what's the perfect movement of the Bitcoin price, it's remained unpredictable and no one knows in the future.

Stick to Bitcoin and that's right, you're on the right path investing Bitcoin in a DCA way, you can minimize your losses through this method.

Speaking about recession, that's a different story here but sometimes these fundamental reports really have an impact on the price and it could be Bitcoin is a safe place against recession.

Well said, the bitcoin market is completely uncertain and it doesn't bother about the other markets. At times it coexist and moves in a mutual way. We were unable to predict what form of movement it has taken right now. Everything is mere prediction and it's move for now is independent. I see this to be the reason for the price of bitcoin going high amidst the ongoing recession.

sheenshane

legendary

Activity: 2366

Merit: 1206

Quote from: feeling sound on July 31, 2022, 04:25:02 AM

Do you guys Believe in this pump or is it just temporary until another leg down?
I personally am not sure so I'm just slowly DCAing in to my favourite projects.

You already answered your question here.
No one can tell us what's the perfect movement of the Bitcoin price, it's remained unpredictable and no one knows in the future.

Stick to Bitcoin and that's right, you're on the right path investing Bitcoin in a DCA way, you can minimize your losses through this method.

Speaking about recession, that's a different story here but sometimes these fundamental reports really have an impact on the price and it could be Bitcoin is a safe place against recession.

arallmuus

legendary

Activity: 2520

Merit: 1403

Quote from: Darker45 on July 31, 2022, 07:20:23 AM

On the one hand, there are people who are saying that Bitcoin could benefit from this recession

Always though. Its like bitcoin and crypto is pretty much always the 'solution' for the current world problem according to those type of people. Well not saying that Im pessimitic with it but its just doesnt make sense at all.

Quote from: Darker45 on July 31, 2022, 07:20:23 AM

For me, the movement of Bitcoin's price right now is not really related to the recession issue.

Its not completely unrelated as well though. Basically everything that is related to the world's economic is going to affect the price of hedge instrument and in this case, it affect's bitcoin. Although that I can say with the certain that holding bitcoin in recession wont do anything major but atleast majority people seems to believe in it

Topic: Why is crypto going up after the news of being in a recession? (Read 278 times)