Why is crypto going up after the news of being in a recession? - page 2.

Dunamisx

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Quote from: feeling sound on July 31, 2022, 03:25:02 AM

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

Why should you? don't you know that news itself has a little impact contributed on bitcoin price, while talking about the economy recession the cryptocurrency market is not dependent on it and moreso, there will be increasing bitcoin price because the more the recession is coming closer the more the people seeks for an alternative to survive from it in which bitcoin is one of the available solutions, inflation is nowhere to be found in cryptocurrency while recession is what fiat has left as a choice for the economy.

fullhdpixel

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

Quote from: feeling sound on July 31, 2022, 03:25:02 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.

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.

The Sceptical Chymist

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It's not just crypto; the stock market is still soaring and has been for over a decade now--it's been the longest bull market in recorded history.

As far as the talk about recessions and so forth, I'm not entirely convinced we're in one yet. I don't doubt that one is coming, but frankly with all the jobs still open and companies looking for workers to fill those positions with, it doesn't feel like a recession has hit. Sure, inflation is taking off, but the economy still seems fairly strong (to me, anyway). And bitcoin has been known to not follow what stocks or other asset classes are doing.

It is and always has been a playground for speculators and straight-up gamblers, so it shouldn't come as a suprise that the price of bitcoin hasn't tanked worse than it already has--and remember, it did take quite a beating in the past few months. It was over $63k last year, and it dropped to less than 1/3 of that. If we're in a recession, I'd say bitcoin did in fact drop accordingly (but I still don't think we're in one).

hugeblack

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When you say it goes up, you need to increase by more than 30% at the same moment of announcing the results of inflation or a short period of them to prove the relationship between the two things, something that did not happen, but there was a traditional increase in the price.

As for the reason for the increase, not the decrease, which is that the markets were expecting the worst, and pricing began according to that worst event, which did not happen, and therefore this positivity is naturally in the form of an increase in the price.

Finally, many believe that raising interest rates will not solve the problem of inflation.

jrrsparkles

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Quote from: feeling sound on July 31, 2022, 03:25:02 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.

I won't say that increasing from 23K to 24.5K is acting like bullish trend because the volatility range is somewhat at 5% range which can happen everyday even with no news due to the trading market and volume difference. Anyway even if the Bitcoin turns out to be bullish in the recession then its not really a big surprise because people are moving to adoption from time to time so we assume that they also started accepting bitcoin as storage of value against these inflation.

laredo7mm

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The market has not shown any bullish sign. Just it is incressing for long time stable and voloum is getting up and ,fake pump is also happaning . markets have little control over external economic factors.and alt is also doing good beacuse of bitcoin is stable in same area . but a big correction will be happen very soon . and big pump is also comming .market is now under control becuse no bad news is come . now This is a normal everyday market . now good time for short trade . so enjoy this bulish time and also wait for correction for buy a large ammount step by step. so the total talk is now market positon is normal .

TheNineClub

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Quote from: feeling sound on July 31, 2022, 03:25:02 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.

Daily ups or downs are neither bullish nor bearish, it's just what the market does, it never flatlines. Any bearish or bullish tendencis can be looked in a more broader time context than this and in all honesty, from what we have seen in previous cycles, it would be to early for any upward motion.

Rikafip

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Quote from: Silberman on July 31, 2022, 07:18:39 AM

This is the way I see it too, it would be nice if people were actually using bitcoin as a store of value and protect themselves from the high levels of inflation that we are witnessing, but I have severe doubts this is going to be the case, it is way more likely that the price will remain close to the current levels for some time, then at some point an important drop happens and many weak hands sell their coins as they are unable to deal with drops in the price anymore.

Not all that sell Bitcoin are weak hands that lost the faith as there are those who think that price will go lower so they sell with the intention to buy back and increase the amount of BTC. I did that back in the late 2018/early 2019 when I sold all BTC and bought it again, almost doubling the amount of Bitcoin. I tried to do something similar later that year but then I lost decent portion of that profit, proving that previous time was just a dumb luck and that I am not cut for trading. Since then I just hodl and I don't try that "sell high buy low" tactic as in my case it usually ends with "buy high sell low" lol.

Lucius

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Quote from: feeling sound on July 31, 2022, 03:25:02 AM

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

Economically speaking, recession is (for some) a much better situation than inflation, and considering that all eyes are currently on the US and its monetary policy, which by raising interest rates is leading the country into recession, the market reacted positively. The US market is very important for cryptocurrencies (perhaps the most important), so any positive change there reflects positively on the price.

I believe that the overall situation would be even better if there was more determination in the EU, but different interests within the Union result in a great indecision, which creates a very confusing effect in addition to the consequences of the war. In addition, the Bitcoin crash at a value of up to $17k is largely the result of the fiasco with Comrade Kwon's project, and the bankruptcy of various crypto landing companies.

Although it is in the zone of speculation if that crash would have happened without those factors, I still believe that they would be much closer to $30k right now if those things had not happened.

sunsilk

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Quote from: feeling sound on July 31, 2022, 03:25:02 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.

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.

NeuroticFish

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Quote from: feeling sound on July 31, 2022, 03:25:02 AM

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

I find it odd you call this pumping. Just put the charts on one-day mode and see what "pump for ants" we had.
And imho it's unrelated to the news about recession. It could be related to the news about stocks ending a good month. It could be related to the fact people start to buy, expecting the bear market to end. But again, it's just a move in the usual range, I don't see any big fuss in it.

Silberman

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Quote from: Rikafip on July 31, 2022, 03:33:20 AM

Current narrative is that this is just temporary and that we are going under 20k again as we need the real capitulation before we can move on and I tend to agree with that as i don't think that we are out of the woods yet. Then again, because so many expect that scenario, maybe we won;t see it and instead it goes sideways for longer period of time before it starts pumping again.

Either way this is a good entry price and since I have no intentions of trying to time the market, I am already buying BTC.

This is the way I see it too, it would be nice if people were actually using bitcoin as a store of value and protect themselves from the high levels of inflation that we are witnessing, but I have severe doubts this is going to be the case, it is way more likely that the price will remain close to the current levels for some time, then at some point an important drop happens and many weak hands sell their coins as they are unable to deal with drops in the price anymore.

KingsDen

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The recession news hit bitcoin in two ways. It will make people feel that there will be high inflation and it will be difficult to have money to maintain living let alone for investment. So, let us feed ourselves first and be happy till recession is over.

On the other hand, some people will feel that the only way to respond to the effect of recession is to invest in bitcoin since 1BTC is always 1BTC. In any of the two ways the effects would be seen on chart.

Personally, I don't have e good knowledge of the charts. The only things that gave me hope to DCA from last month is that I am sure bitcoin is not a bubble and I have seen bitcoin @ $69k and now it's within $20k, which means it will surely hit $69k again, it doesn't matter how long it takes.

Taskford

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Quote from: feeling sound on July 31, 2022, 03:25:02 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.

Due to the hype that bitcoin can be there safe haven in times of recession and many people talks about it so maybe this is the effect of the discussions made by people.

If this is the real case happening then this is good news to us since we are all benefiting if more people will shift to use crypto since this could give green flags to the government and improve its adoption level.

Darker45

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On the one hand, there are people who are saying that Bitcoin could benefit from this recession, which the top guns are denying even to the point of changing its definition. On the other hand, there are also those who try to explain the bearish market to be generally brought about by macroeconomic factors, of which the recession is an effect. I guess opinions are basically divided.

For me, the movement of Bitcoin's price right now is not really related to the recession issue. It so happened that Bitcoin has already started to recover--if indeed this is recovery--when the issue of recession exploded, even though it has already been a topic of discussions for some time.

davis196

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The spring Bitcoin price crash from 40K to 20K was caused by several big crypto companies going bankrupt and all the panic around them.
Many traders/investors/users have realized that Bitcoin can survive without Celsius, Voyager and all the other scams. Maybe that's why some investors started buying Bitcoin again. This definitely isn't a bull run. It's normal market volatility. At least all the "doom & gloom" anti-Bitcoin haters/FUD spreaders have stopped with their nonsense for a while. It would be nice if the price recovers back to 30K or even 40K USD, but this is highly unlikely to happen anytime soon. I predict the Bitcoin price is going to stay in the 25K USD range until the end of 2022 and a 60K-80K price range after the next BTC halving in 2024.

Alisha-k

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Quote from: feeling sound on July 31, 2022, 03:25:02 AM

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

You won't call this a pump. It could be a retracement or a pullback sometimes during recession news the market goes bullish first so the bulls can get exhausted before the bears do what the have in mind. i will just advice a DCA. If prices crosses the current $23k and keeps moving upward and heads to $25k then it will be a good time to catch up with the new trend else i wait for the reversal and buy lower again while

so98nn

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It has not even crossed the upper limit of this year so its not really back up yet. I would say bitcoin went up once it reaches the value of at least ATH of this year, that is from January to present timeline. I am not talking about the last years ATH since situation at that time and this year is entirely irrelevant. Basically there are many things are happening since we reach 2022. Most of the businesses are settling back, but then two countries started war and more than half western hemisphere got tangled up into it indirectly. Different sanctions, yes and no's is really making the market go crazy. So definitely investors are very used it now and might have started investing back again into bitcoin no matter what news feeds the paper. May that very tie of what will happen next is now broken and thats why up and down movements of bitcoin all the time.

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Quote from: feeling sound on July 31, 2022, 03:25:02 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 think it is a natural thing because every day there is always demand and supply in the market which is still not stable

Quote

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

Actually there is nothing strange at this time even though there are many news circulating about Bitcoin and others, but basically I always don't believe the news immediately after reading it because I still need to prove the truth of a news after I read it.

Quote

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 still believe in pumps because drops are common in the market and it's always very close to pumps. You can see for yourself that in the market when there is an increase, there will also be a decrease. So try to understand every condition that exists.

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Quote from: feeling sound on July 31, 2022, 03:25:02 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.

Firs time?
This is a normal everyday market in crypto. That's the point of volatility, intermittent upward and downward movements over a period of time. Volatility is high in this niche and so, that period of time can be very narrow, leading to wild daily price actions.

Quote from: feeling sound on July 31, 2022, 03:25:02 AM

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?

Bitcoin is not proving to be anything; It is what you make of it.
It can be a speculative asset, a hedge fund, a currency etc. There are qualities in it which makes is usable as any of these.

Quote from: feeling sound on July 31, 2022, 03:25:02 AM

Do you guys Believe in this pump or is it just temporary until another leg down?

I think the pump is temporary, but I also think we've found or at best almost found the bottom and the price should not drop much further.

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