Bitcoin Forum

What do you guys think will happen to the price of bitcoin (and altcoins for that matter) during a recession? Often when stocks went down a little crypto market would surge. But how will bitcoin behave in a full on world economic recession? Because history tells us that a recession is coming, we haven't had one in ten years, it might be 2018,2019, or even 2020 but it's coming. Do you think the traditional market and the cryptocurrency market are negatively or positively correlated? (Or are they correlated at all for that matter?)

Without mass acceptance as a payment systems, it will be seen a risk-asset, so I would expect it to drop hard like most risk-assets. I do not see any safehaven in Bitcoin at current conditions.

Thanks for opening up this question. I would like to see what others' opinions are too. It is quite tough to  predict the future in case of cryptocurrencies and economical crisis is something which can effect the crypto market in any of the way (positive or negative).  There has been no recession since the creation of Bitcoin which is why we can say how will it effect it. In my opinion the economical crisis would strike Bitcoin in a negative way since it is not yet been accepted throughout the world. It would certainly create a panic/FUD in the crypto market and hence there are pretty good chances that BTC will decline.

bitcoin has always been an additional option for investment, a good investment too for that matter. but it was never seen that way by everyone. in the early years there were fewer people thinking this way but i do believe that ever since 2017 bitcoin is widely considered a legit investment just like gold and other things.

with that said during any kind of economic recession people may turn to bitcoin even more and invest in it and that means a big rise could potentially happen because of injections of a lot of money in the market.

We definitely can not predict anything when that happen but as a recession may go it can decline the price or value of bitcoin, But in my opinion I don't see that bitcoin's going to be affected by it because we can see that bitcoin is really having a hard time with the resistance right now if a decentralized like bitcoin would be affected then it's price can sure decline but just like the recent drop.

There is another insight which my friend made me realise just now when I was discussing this question with him. The chances for Bitcoin and other cryptocurrencies to increase in price are quite high during a recession because in a recession/world crisis the price of fiat currencies go down. The crypto market wont be affected because of it and will remain stable in it's price. Now since the price of fiat currencies like $ will go down , will mean that BTC will increase in price.

So the conclusion is that the possibilities for BTC to increase/decrease in price are equal.

First of all Good question to ask.I think the recession will not affect much to bitcoin rather it can grow the investment in bitcoin.people during recession times looks to find different ways to earn or to save there money as all the regular business drops.There is no better way to save your money as well as earn than investing.That's what i feel.

I just gonna say if the recession is caused by the banks, or mismanaging of fiat currencies then our industry stands to gain a lot. Think about it if your government is corrupt (maybe not 1st world) and they begin printing tons of money to bail out banks and themselves, the first thing you are going to think is how can I protect my assets? I say because this is how most recessions happen and I don't foresee war on the horizon. For that reason I believe it is more likely BTC will gain during a recession than lose during a recession. Obviously one big factor on this is how educated people are about governments, money, and the crypto space. If they have limited knowledge, they may not even know pulling out is best. That is why I say it is more likely, but I certainly don't rule out the sheep not making the correct play in this spot and getting fleeced yet again.

Interesting one, who can defiantly say.
Its the governments and banks that cause recessions, if everyone was involved in crypto or Bitcoin there would be no recession.
You would have full control of your money, I'm going to say Bitcoin would do well in a recession.

I do not want to agree that the world has not witnessed any recession. Just recently, the world had an economic recession, I think around 2013/15 , that sweeped even europe including greece and turned many countries into borrowing.

Off course, recession would affect bitcoin too because it is also a means of payment and affected by demand and supply.

I believe the price of bitcoin will surge during a recession. I believe the price will surge because at that point bitcoin will be seen as a safe haven, something that do not lose value over time like traditional money and traditional investments do. People who will have bitcoin at that time which by predictions of the OP doesn't look far away will be the ones who will not be hit by the recession.

We haven't had bitcoin in last recession of 2008 so we haven't see any bitcoin behavior during a recession so all of our ideas remain only predictions so far. Maybe I am over optimistic about bitcoin price surge during a recession but that is my thought.

I believe during the recession Bitcoin price would grow as people will be searching for alternative options of investment, which is exactly bitcoin and other altcoins. But let's hope recession is not coming anytime soon :)

Firstly there's little correlation between stock markets and cryptocurrency just now.

Secondly I think we are still a good number of years from a recession, possibly not even until 2025, interest rates are only just starting to increase globally.

Finally, in recession spending decreases as people tighten their waste belts, crypto will be no exception to this and so we can expect the market to be lower than it otherwise would be (this does not mean it has to fall)

In a recession institutional money from stocks flows to asset with disassociated risk, like gold.

But this is going to be the first time that we have bitcoin as an option.

My bet is that money will flow from stocks to Bitcoin, and it will sky rocket in a recession.

My plan is to sell partial profits from bitcoin at 30-40k and buy SP500 for a very low price when that happens =D

IMO i think bitcoin will take the role of gold. As we know during recession usually gold tends to go up in price as a lot of investors park their money in gold. I think Bitcoin can replace gold. Will just wait and see !

Thanks !

Bitcoin price might go down a lot. This is because at the time of recession it would be obvious that people like you and me will have no funding option but to get our crypto currencies sold out. In this way everyone will mostly sell the bitcoins and will get the more stable assets invested such as gold or silver. We never know what will happen to rest of the crypto currencies but bitcoin would be number one currency to be sold. Because at the time of recession the only thing that will be less is the money! Bitcoin will become prior source of funding.

Bitcoin will really take over gold even now. Bitcoin is so far away to the value of gold, gold is only secondary for the people nowadays since earning cryptocurrencies is more easier than to have gold at all. Gold is an old money for me, only the rich person have that and the banks as well. Earning gold is too hassle for everyone that is why bitcoin will still be the number one.

In a Recession, people will always look for some "Safe haven" for their wealth. They usually buy Gold and other precious metals to hedge against a drop in value of other investments. Bitcoin has been seen as a good store of value, but it is very volatile.

Also in a Recession, people tend to have less money available to invest, so the price & adoption will go down and this will cancel out any investments that might have been coming from people who wanted to use Bitcoin as a Safe haven.

During recession, everyone will be looking at 'safest' place to store/invest/safeguard their money. Stock market, currencies, properties, commodities etc will go down. generally I think those big funds will buy into gold which makes the gold price go up. Upon a certain limit, they will look for alternatives. I believe bitcoin will be one of them. With tonnes of money going into bitcoin, the price should be on the up trend.

Just my personal opinion...

It would highly depend on what caused the recession and the current state of bitcoin during it. But mostly if we consider the Dow Jones index, you'll see it crash during recessions. Most posts are saying that bitcoin is the "safest" place, maybe they're right. But the truth is, with the current adoption of the technology, people arent going to see it as the safe haven. It will be just another number dropping if people dont start using it. But right now adoption is rising, so who knows.

Here is what will happen during recession to bitcoin prices:

1) Big companies will also have lack of funds as they will less number of prospects or work available. As  a result, they will be forced to sell their assets to pay for the running expenses. If they have bitcoin funds, they will have to sell those.

2) A lot of people will loose jobs. Since these people will have no source of monthly income to pay for rent and food, they will have use the savings. Once bank deposits are spent, they will have to sell crypto holdings.

All this will increase the supply and reduce the demand of bitcoins.

bitcoin will cease to grow. He will not start falling, he will simply stop growing. This will cause the bubble to burst. In the world there will be a lot of crypt, bought for credit money.

It should have a negative impact on Bitcoin as during recession people would want to move to a safer option and Bitcoin is a high risk asset and people would already be in fear mode and avoid Bitcoin.

I've been wondering this too.  You might think it act as a safe haven or alternative investment, but when the us markets went into deep decline a couple of weeks ago, Bitcoin sold off, too.  Now, that may not be indicative of a multi year bear market, but it was kind of unexpected to see.

This. Anyone in distress (and this includes institutional investors facing margin calls or withdrawal of funds) will be sellers. However, there will be a few buyers at rock bottom prices.

The old school hodlers will continue to hodl.

Probably you are correct because a lots of sign of bitcoin recession happening today...  A lots of people get panic because they are thinking that soon bitcoin will not have a value...  Well maybe our market and the market here are the same and correlate which it other...  But always remember that maybe soon it will come back...

The price on the bitcoin may decrease and there will be a replacement coin, but the bitcoin price will increase when the bitcoin can not be mine again and the altcoin price will also increase with the development of cryptocurrency.

As we all know that bitcoin is sustainable, volatile and versatile crypto currency and this volatile nature of bitcoin is responsible for so frequent flactuation in the valuation of bitcoin and this troubled most of the people that they might suffer from loss and this is the biggest reason that why people are now hesitating in investing into bitcoin because this time the rates has been deflated to very low extent but people needs to understand that pump and dumps are very common in every investment there is nothing new with bitcoin.

There has been no degradation since the creation of Bitcoin, which is why we can say how it will affect it. In the early years there were few people thinking this way but I believe that since 2017 bitcoin is considered as legitimate investment like gold and other things.

I also want to see what the other person's opinion is. There has been no degradation since the creation of Bitcoin, which is why we can say how it will affect it. It will definitely create a panic / fud in the encrypted market and so there are pretty good chances that the BTC will fall. But in my opinion, I do not see that bitcoin will be affected because we can see that bitcoin really has a hard time with resistance right now if a decentralized bitcoin would be As a consequence, its price is likely to decrease but it is likely to be lower.

Bitcoin and other cryptocurrency will be the most benefited by this recession which OP is mentioning. As their is no alternative source which can give you immediately solution to the recession.

I think the reason for the economic downturn due to many reasons. And recession is what the economy is experiencing so bitcoin and altcoin will be affected more or less. But they will definitely recover

 The above topic is highly speculative, what is important is, one should monitor the market status. what cause the Recession? If one market collapse, it will send a signal to what might happen in the market after such collapse, Government or Financial institution will make necessary move to control the damaged for this country. For me, if all indicators are given and leading to a total disaster i will take out all investment, to cut further loses on my part.

I think bitcoin will not be affected by a recession if ever it happens. It has a high chance that its value can go up not like the fiat money. But that's just me, Nobody can know the future. We'll just have to wait and that this recession will not happen anytime soon and will not affect bitcoin

I've seen traditional markets and bitcoin markets connect in harmony, because the bitcoin system is very different from other financial systems, so bitcoin essentially has its own system, and does not crash into traditional financial systems.

It has a high chance that its value can go up not like the fiat money. But that's just me, Nobody can know the future.

Bitcoin is a volatile crypto currency and therefore its valuation is subject to flactuation and I think this is the most troubling for all the investors because one day its valuation reaches the sky high, creating excitement among people and another day , its valuation deflates to that low extent that people feel like that money has drowned but I think there is nothing to worry about in this because if the valuation is low then you should be little bit patience and should hold your coin till the next inflation.