What does this mean for BTC is stock market is entering recession again?

[cheezcarls]

Outspoken investor John Hussman claims that we are on the brink of stock market collapse. He argues that even a 50-65% market crash this cycle is “somewhat optimistic.” What would such a collapse mean for Bitcoin?

This month, the U.S. economy posted its longest period of expansion in its history. This is now officially the longest period its economy has gone without a recession. While there is room for celebration, such a fact should cause us to worry: is the current growth sustainable? According to some financial analysts, we could be in for a serious correction and, even worse, could see a complete wiping of almost all the gains we’ve had thus far.

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It looks like we are in a brink of another stock market collapse like in 2008!

Back then during the stock market crash, it's where Satoshi Nakamoto has published his whitepaper about Bitcoin. Now here's the thing.

If the stock market recession were about to repeat anytime soon, it means that there's a possibility about investors moving their funds from stocks to Bitcoin or any other cryptocurrencies.

What do you think guys? Do you think it's possible that these investors are going to move into Bitcoin when stock market is about to crash again? Hmmmm....

[mk4]

It completely depends I think. There's going to be a significant difference between the stock market correcting, compared to the United States actually having a recession. The former I think would have minimal effect on bitcoin's price, while the latter, when were talking about hyperinflation and such, my guess is that bitcoin will drop with almost everything.

I'm definitely not an economics expert though, so yea.

[figmentofmyass]

Outspoken investor John Hussman claims that we are on the brink of stock market collapse. He argues that even a 50-65% market crash this cycle is “somewhat optimistic.”

him and every other commentator are repeating the same thing---imminent collapse coming, sell everything. in fact, they've been saying it for a year already.

but look at the charts. the stock market literally made a new all-time high today! maybe they should at least wait for a sizeable dip before expecting a 65%+ crash lol.

this reminds me of the 2005-06 period. everyone is pessimistic about an incoming crash but the market keeps climbing the wall of worry. considering how bearish everyone is, i'd say we have a good 1-2 years before the crash finally comes.

What would such a collapse mean for Bitcoin?

it would exacerbate a market decline in BTC. there is no perfect hedge to a global economic crash and if there were one, it's not BTC.

[mk4]

it would exacerbate a market decline in BTC. there is no perfect hedge to a global economic crash and if there were one, it's not BTC.

Yeap. Well, at least not currently. I think bitcoin could be a great hedge for economic uncertainties in the future, when bitcoin gains enough liquidity(probably at the same level of gold or more) and sort of "public acceptance". As for now, bitcoin is still mostly a speculative vehicle for the majority so I also heavily doubt that it would be a good hedge as of now.

[joelsamuya]

If the stock market recession were about to repeat anytime soon, it means that there's a possibility about investors moving their funds from stocks to Bitcoin or any other cryptocurrencies.

What do you think guys? Do you think it's possible that these investors are going to move into Bitcoin when stock market is about to crash again? Hmmmm....

When there are bad news on the horizon in terms of the economy and politics, Bitcoin is always benefited and it is because people and investors would be looking for something else where they think they can safely and profitably park their money. In case, there will really be a recession again akin to the last decade then Bitcoin will surely jump and pump in value and can be attracting more and more speculators again just like in 2017. Still, there is no guarantee here and nobody can really predict if recession will be coming up and if that can happen next year or the following year...as the economy of the USA is also holding on and seems to be developing some rate of resiliency.

[gentlemand]

Yeap. Well, at least not currently. I think bitcoin could be a great hedge for economic uncertainties in the future, when bitcoin gains enough liquidity(probably at the same level of gold or more) and sort of "public acceptance". As for now, bitcoin is still mostly a speculative vehicle for the majority so I also heavily doubt that it would be a good hedge as of now.

If such a meltdown were to happen in 5-10 years from now I'd be much less certain about Bitcoin's prospects - in a good way. If it happens soon it's on a toast express to hell like everything else.

We've been in uncharted waters for so long with so many bizarro interventions from the monetary people it's impossible to know what's going to happen with this cycle and when it'll go officially sour.

[Darooghe]

Despite a serious stock market recession will mean that people will have less money to spend in general, it depends on the speed of the recession. If it is slow, then people will shift to cryptocurrency for better gains. If it is fast, then every asset will initially suffer. I think cryptocurrency falls into the speculative side of investing at the moment and in an economic downturn money usually moves to more stable conservative investments like gold, bonds, etc. thereby, I'd predict a downturn in cryptocurrency price if the stock market crashes quickly.

[CodyAlfaridzi]

What do you think guys? Do you think it's possible that these investors are going to move into Bitcoin when stock market is about to crash again? Hmmmm....

Yes, one of the reasons why I'm bullish now is the chance for a recession in the near future. I mean there are already tons of indicators crying out loud for recession. And it would likely be good for Bitcoin as people look for an asset that could save their wealth. That's gold, and I hope Bitcoin too. It will be an interesting time indeed.

[alyssa85]

If the stock market recession were about to repeat anytime soon, it means that there's a possibility about investors moving their funds from stocks to Bitcoin or any other cryptocurrencies.

What do you think guys? Do you think it's possible that these investors are going to move into Bitcoin when stock market is about to crash again? Hmmmm....

The stock market crash will be bad for bitcoin.

First of all, those who are selling in a falling market get less for their stocks, and so have less to invest elsewhere.

Secondly, a lot of the trades in the stock market are done on margin, and when investors get margin calls, the tendency is to sell bitcoin to meet those margin calls.

If you look back to 2018, the stock market declined from June 2018 to Feb 2018 - and bitcoin's price dropped from $7,000 in June 2018 to $3,400 in Feb 2018.

It was only when the stock market rose again, did the bitcoin price also rise. 

[panganib999]

Possible. I mean, if the premise of market crashes and investor moves, then yep It's pretty much a done deal. But the stock market has been preparing for this possible recession and they are prepared for whatever big moves the recession could bring them. Staying in the stock market throughout the recession could bring out profits to those whom would stay.

That, or the recession actually affects the market of BTC, with it failing to become a pillar of support for those transferring from stocks. Sadly, BTC isn't a guaranteed hedge in the market, and with the halving nearing and the possible recession just in the neighborhood, I'd say it'd be actually hell on the market there and then.

[o48o]

This has been predicted for a long time now and it seems like everyone agree on it, and when everyone agrees, that usually means we have not reached the turning point yet. So i am guessing that the rise will still continue just because everyone is usually wrong.

[mk4]

Yeap. Well, at least not currently. I think bitcoin could be a great hedge for economic uncertainties in the future, when bitcoin gains enough liquidity(probably at the same level of gold or more) and sort of "public acceptance". As for now, bitcoin is still mostly a speculative vehicle for the majority so I also heavily doubt that it would be a good hedge as of now.

If such a meltdown were to happen in 5-10 years from now I'd be much less certain about Bitcoin's prospects - in a good way. If it happens soon it's on a toast express to hell like everything else.

Pretty much. I don't know if we could get to that point in 5-10 years though, to the point that people are actually convinced that bitcoin is a great alternative to non-correlated assets like gold. I don't think we can get there in that time span, but the perception of the masses of bitcoin can definitely change in a snap of a finger. Well, once again, time will tell.

[watergold]

Bitcoin will not collapse just like that we see developments now all using technology and adopting bitcoin as an ideal transaction so that Bitcoin disruption will not be possible, see the market has grown green a sign that the bullrun will come.
I'm sure investors will have a way if it really collapses like in previous years.

[Hypnosis00]

I really couldn't tell about that but I do believe that the market won't fall for another disappointing price.
What I've to look at now is that we are still having a healthy market, the prices aren't really bad to look at. That certain speculation is just a mirror from the previous bear season and they'll think that it soon to happen again. But I'd think that investors won't let that thing to happen again for they still have the power to change the market trend into good.

[Silberman]

It looks like we are in a brink of another stock market collapse like in 2008!

Back then during the stock market crash, it's where Satoshi Nakamoto has published his whitepaper about Bitcoin. Now here's the thing.

If the stock market recession were about to repeat anytime soon, it means that there's a possibility about investors moving their funds from stocks to Bitcoin or any other cryptocurrencies.

What do you think guys? Do you think it's possible that these investors are going to move into Bitcoin when stock market is about to crash again? Hmmmm....

We are in uncharted territory here, bitcoin was created as a reaction to the crisis of 2008 so it didn't had to endure it, and regardless of when that recession happens that will be the first time that bitcoin will have to face such market conditions, I really think that at the beginning the price of bitcoin will go down as well as people get scared about what's happening but then they will realize that bitcoin is not correlated to the stock market and that it could be in fact one of the few assets that will give profits during that time.

[figmentofmyass]

If such a meltdown were to happen in 5-10 years from now I'd be much less certain about Bitcoin's prospects - in a good way. If it happens soon it's on a toast express to hell like everything else.

i think bitcoin is destined to crash in any typical financial crisis / economic crash scenario---even if it achieves a status similar to gold. gold crashed 34% during the 2008 crisis after all. gold may hold its value better than other assets but hedging economic contractions is about minimizing losses, not preventing them entirely.

when it comes to economic contractions, cash is king.

the only situation where that's not true is a currency crisis where fiat currencies like the USD completely collapse. this is a very different situation than a garden variety recession. predicting a recession is one thing; predicting the collapse of fiat currencies is a bit more of a long shot!

[Febo]

As many already replied, bitcoin will crash together with stocks and Gold. But Bitcoin and Gold will recover fast and then even start growing. Stocks will stay low for a year  or more.  I believe as late this recession comes better will be or Bitcoin. Since bitcoin needs time to make him stronger.  Everyday that passes, there are more and more chances there will be no recession in 2020.

[BrewMaster]

Outspoken investor John Hussman claims that we are on the brink of stock market collapse.

i am not a stock market trader or follower but as long as i remember there was someone who has been saying the same exact thing and not just that they also predict a global recession! and although it remains a possibility but it is not something these random people can predict.

what does it mean for bitcoin? it is hard to say. we haven't had bitcoin during any recession. bitcoin was created after the last big one and it kind of was created because of it (banks centralized corruption and needing a decentralized currency). so if i had to guess bitcoin should go up big time if a recession occured.

[sunsilk]

They've probably moved already and doesn't want to expose their activities so that others wouldn't notice it. But this is against to what I've just read about stock market for 2020. This is what I've read what the wealthy people tells for 2020's stock.

Where wealthy Americans think the market and US economy will be at end of 2020

[Biodom]

Outspoken investor John Hussman claims that we are on the brink of stock market collapse. He argues that even a 50-65% market crash this cycle is “somewhat optimistic.” What would such a collapse mean for Bitcoin?

This month, the U.S. economy posted its longest period of expansion in its history. This is now officially the longest period its economy has gone without a recession. While there is room for celebration, such a fact should cause us to worry: is the current growth sustainable? According to some financial analysts, we could be in for a serious correction and, even worse, could see a complete wiping of almost all the gains we’ve had thus far.

Source link here

It looks like we are in a brink of another stock market collapse like in 2008!

Back then during the stock market crash, it's where Satoshi Nakamoto has published his whitepaper about Bitcoin. Now here's the thing.

If the stock market recession were about to repeat anytime soon, it means that there's a possibility about investors moving their funds from stocks to Bitcoin or any other cryptocurrencies.

What do you think guys? Do you think it's possible that these investors are going to move into Bitcoin when stock market is about to crash again? Hmmmm....

He does NOT predict that market would go down.
He predicts that market return in the next 10-12 years would be close to zero.
It could be down-up or up, then down or flat or multiple down-ups as long as the sum is about zero.