Crypto

Recession and Cryptocurrency. Here’s Why This Management Company Thinks Bitcoin’s Price Will Rise – The ₿log

As recession rumors swirl in the wake of the latest U.S. economic growth data, digital asset manager CoinShares issued a bullish outlook for Bitcoin on Friday in a tweet:

“Are you concerned about how the cryptocurrency industry will develop? When it comes to how bitcoin can behave during a recession, our research team agrees, and it’s not as bad as you might think.. »

CoinShares reports a blog post claiming that the rising dollar, which has made Bitcoin particularly susceptible to rate hikes, is primarily responsible for the recent price decline.

CoinShares claims that the US and the rest of the world will weather a recession, which will prompt the Fed to start easing measures due to a combination of Fed rate hikes and a worsening situation in the financial sector. caused crisis in Ukraine.

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Therefore, CoinShares believes that a dovish Fed and a weaker dollar will support Bitcoin, which is a fast-growing store of value and growth asset. According to CoinShares, this will likely end bitcoin’s erratic movements and end its correlation with tech stocks.

USA: recession or not?

🔥 HOT – The #USA is officially entering recession after two consecutive quarters of negative GDP growth. This last happened in 2020 at the height of the COVID crisis. https://t.co/RfMP9Fv07f
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It is important to note that the US economy has shown signs of weakening, even though the Fed refuses to announce that the first economic force is in recession due to good unemployment figures. Last week it became known that the US economy is contracting for the second quarter in a row, which is one of the signs that the country is in recession.

Read also Can the price of Bitcoin (finally) break out of its price range?

Last week, the Fed once again raised rates by 75 basis points. The rate hike appears to have been priced in by the market, with cryptocurrencies reacting positively.

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