The recession is going to pump the price of Bitcoin?

[gantez]

DO you think we are going to see a recession any time soon, and if yes, will it pump the price of Bitcoin?

I can't say if there will be recession but if there happen to be any, it is suppose to pump the price of bitcoin. People will likely keep their money in bitcoin and demand to buy will go high because many won't sell and the law of supply and demand will  be the order of the day.

[Harlot]

If other markets are hit and the same people are liquidating all their assets (including crypto) then I think there is no industry that won't be affected and that includes the crypto industry. In a recession there is really no safe haven that is built to stand it because what is affected is the people around it not just the market within. If a lot of people are needing some cash on their hands right now then there is really no choice to go but to liquidate all their assets. The turning point in any recession is of course if you have an extra cash lying around for investing, buying it in the recession is good but of course the profits will have to wait after the recession is over. I just don't see in any kind of scenario where only the crypto market is bullish during the recession.

[Theb]

Yes, but it will not affect bitcoin's price.

Bitcoin will continue to follow its four-year cycle (with a small possibility of a five-year cycle) where there will be one full bull year and one full bear year. The price will follow the log scale.

You've got it all figured out, huh? Sounds like everything is already set in stone!

At most we have 2 data points, which is way too little to draw these conclusions. From a statistics perspective this is a wild guess. I'm trying to keep a more open mind. I don't think any of us has any idea what the chart will look like in 10-20 years. Chart analysis is heavily hampered by recency bias.

That's why I would be careful assuming Bitcoin is limited to its past log trend. I think that assumption will convince lots and lots of early adopters to sell ridiculously early.

I do agree with what extasie has to say whether a cycle exist or not there is really no guarantee that a cycle will still continue to happen with a lot of various external factors happening involved with the market and for this instance the recession. If a recession would take place there is really no immune market we can call as a "safe haven" as all markets would be affected with price increases of goods, unemployment, decrease and economy all of it will affect every people who needs cash to live daily. The recession will affect all and I doubt any kind of cycle will continue as long as we are in it.

[Questat]

DO you think we are going to see a recession any time soon, and if yes, will it pump the price of Bitcoin?

I can't say if there will be recession but if there happen to be any, it is suppose to pump the price of bitcoin. People will likely keep their money in bitcoin and demand to buy will go high because many won't sell and the law of supply and demand will  be the order of the day.

If nobody wants to sell their Bitcoin because of its market recession, how it could help to move the price? Buying and selling are what we need in order to uplift the price, if we wanted to have a high price then never sell our BTC in cheap. It is not the market recession's that could help, we only need more crypto users and adopters to make the demand much higher, there we can see the price will move higher.

[Herbert2020]

If other markets are hit and the same people are liquidating all their assets (including crypto) then I think there is no industry that won't be affected and that includes the crypto industry. In a recession there is really no safe haven that is built to stand it because what is affected is the people around it not just the market within. If a lot of people are needing some cash on their hands right now then there is really no choice to go but to liquidate all their assets. The turning point in any recession is of course if you have an extra cash lying around for investing, buying it in the recession is good but of course the profits will have to wait after the recession is over. I just don't see in any kind of scenario where only the crypto market is bullish during the recession.

actually during a recession people do not liquidate their "assets" in fact they start gathering more because during a recession fiat is losing its value (buying power) so if you convert it to assets you can save yourself from becoming poorer. it is not so much about needing cash in hand, it is more about surviving.

but the thing is, that people start going towards safer assets and abandon those with higher risks. for example during a recession since companies are losing, 99% of them go down so people sell the stocks of those companies and maybe some go into that 1% that is rising (just like 2008 recession and the handful of stocks that actually went up).

in all of this, bitcoin is considered a high risk asset but at the same time because of its design and the fact that it has never been connected to any other market and also because it was created out of the previous recession, there is a very good chance that it will be one of the few things that gains value as fiat tanks.

[Ridwan Fauzi]

DO you think we are going to see a recession any time soon, and if yes, will it pump the price of Bitcoin?

I heard many times about recession and thus far I haven't see that event is happening. Indeed, if the recession comes the investor will turn up their money to the place that can be trusted as a safe-heaven asset such as gold AFAIK.

But I don't thinking that the investor will choose bitcoin as their place to store money. Most of them will only see a gold as their purpose since the gold price is not volatile and they assume that gold is a safe place rather then bitcoin. I don't hope too much against recession because there is some fundamental factor who can make bitcoin meet increasing price.

[STT]

Economic expansion and the monetary base are two separate things though they tend to be related because FIAT currency has fractional reserves and expands greatly in line with business growth.    How this effects crypto is going to vary because its not a direct link but if monetary standards become tighter then expect the price for BTC to be lower.
    The reason why there is less money available during a recession is also because people no longer have an excess to save or invest elsewhere, simply they must pay the bills that allow them to eat  and live under a solid roof so we become more restricted to a solid only economy.
  Luxury goods obviously suffer at this time and its debatable if Bitcoin would or not.   The OP question is opposite to common thinking, if a recession likely lowers the price of oil then BTC also seems likely to most people.

[Dart18]

Nah, I dont think so.
If we are talking crypto currencies as their fall back option only then I bet they will putting it with a stable coin.
It is the safer way for them and this investors mind set are more of safety first.
They dont go for larger risk and something which came out from thin air.

[Hypnosis00]

It is pretty sure people don't want such a market recession to happen instead to be preferred for having the existed price.
This is not a thing that could help the market recovery, it only makes it down as many investors lost their courage as well. We all that way far from the very beginning and the prices if high and we feel better if we make it stabilize rather than of turning back.

[Febo]

If other markets are hit and the same people are liquidating all their assets (including crypto) then I think there is no industry that won't be affected and that includes the crypto industry. In a recession there is really no safe haven that is built to stand it because what is affected is the people around it not just the market within. If a lot of people are needing some cash on their hands right now then there is really no choice to go but to liquidate all their assets. The turning point in any recession is of course if you have an extra cash lying around for investing, buying it in the recession is good but of course the profits will have to wait after the recession is over. I just don't see in any kind of scenario where only the crypto market is bullish during the recession.

actually during a recession people do not liquidate their "assets" in fact they start gathering more because during a recession fiat is losing its value (buying power) so if you convert it to assets you can save yourself from becoming poorer. it is not so much about needing cash in hand, it is more about surviving.

Money gain value during recesion. Houses and land loses value. Stocks loses value. Cars loses value. If everthing lose value in money that makes value of money stronger and not weaker.

[exstasie]

Luxury goods obviously suffer at this time and its debatable if Bitcoin would or not.   

One of my former trading mentors had a theory about BTC. He called it a "Veblen Good."

A veblen good is a good for which demand increases as the price increases, because of its exclusive nature and appeal as a status symbol. A Veblen good has an upward-sloping demand curve, which runs counter to the typical downward-sloping curve.

It's true that Bitcoin's limited supply makes it extremely "exclusive" when price is exponentially rising so I'm interested to see his theory tested in the next recession. Like you said, luxury goods suffer during recessions because of a lack of excess capital. I believe BTC will suffer as well.

[davinchi]

DO you think we are going to see a recession any time soon, and if yes, will it pump the price of Bitcoin?

Depends on the reason of recession. People do not remember why recessions happen, they remember the 2008 and the banking crisis and they think that could be the only reason why a countries economy could go very bad. Just to give a simple example just last year S&P went down a lot because of China trade wars not because of banks, in previous years around 2001 there was one because of currency instability in certain countries for printing too much.

There are tons of reasons why recession happens and what will happen to bitcoin depends on the reason of it, if it is a reason that makes fiat worthless then yeah bitcoin will go up, if it is a reason that makes governments weaker than it may not be related to bitcoin after all. I personally think that there are more options that doesn't change bitcoin price then the ones that affects it.

[error08]

DO you think we are going to see a recession any time soon?

Global recession? Not any time soon imo. We have seen some countries already in-or on the verge of recession, struggling to raise their annual GDP such as in Venezuela, Argentina, Brazil, and some has recovered such as Germany, Italy, UK, Japan.
According to The Guardian news, "Weaker growth in both advanced and developing countries means the possibility of a global recession in 2020 is a clear and present danger, the UN has warned.".
However, Joseph Stiglitz (Nobel winner in economics) said; the world economy began a severe slowdown, but there will be no crisis.

and if yes, will it pump the price of Bitcoin?

If during a recession fiat money loses value, then commodities like gold and bitcoin are more likely to get more demand and value as happened in Venezuela, it has been proven.

[djsugar]

Bitcoin can act as a safe investment haven in case of recession just like gold. More than a currency, it act as a store of value. Bitcoin has inbuilt deflation and is not under any regulatory authority which will keep is away from any affect of recession. It will not behave according to the market. Just like what happened Zimbabwe and Venezuela, people jumped to cryptos as a safe haven when hyperinflation stuck them.

[eaLiTy]

DO you think we are going to see a recession any time soon, and if yes, will it pump the price of Bitcoin?

The timing of your thread was spot on as the market started tumbling after that, you cannot call that as a recession but it is a small correction as the price was not having any direction for a long time and then the BAKKT was launched and the hype we had till that time popped and the market started going down. We will see a pump in the market after the halving, invest your money when the market is down and hold for a long time till the market start to pump hopefully by the end of next year.