US potential Recession and its effect on Cryptocurrency

[Findingnemo]

Recession in US may not affect the cryptocurrencies entirely but at end of the day it is not going to happen only with the USA's economy so the cryptos also will get hit depends on how much trust the crypto investors have on it.AFAIK, it will be a much worried condition for crypto users and moreover the inflation will increase the price of bitcoin on USD basis so it will look like bullish trend on cryptos.

[1715368582]

1715368582

[1715368582]

1715368582

[1715368582]

1715368582

[1715368582]

1715368582

[patz22]

it is basically a domino effect, there are many investors, traders, players in crypto that are based in US and basically, as you can see when stocks were down, crypto market also went down. Meaning whatever it is, it may or may not depending on the situation will effect the crypto industry but for me, since I said that there are many small players are in the US, of course, they will make sure that their assets are safe so they may convert to something safe, like gold or maybe stable coins.

[Averim]

With no money people start to sell their crypto asset so probably the price will go down like a hurricane till a certain point.

[coolcoinz]

With no money people start to sell their crypto asset so probably the price will go down like a hurricane till a certain point.

There will be a lot of money, more than there is now. That's how countries counter recession - they print.
People don't sell their investments because they have no money. They sell investments because they see everything lose value and jump from one form of wealth allocation to the other in hope that they will do better holding cash than shares of a company that may go bankrupt.

[Latviand]

US economy might go into recession but I am not going to say that bitcoin will be affected. The price of Bitcoin might continue to increase despite whatever is going to happen next. By then many people will start to invest their money in Bitcoin and running away from fiat, causing even major crashes on fiat, while the cryptocurrency market continues to boom.

Bitcoin will probably be affected because it is in the economy of a country. There are economical activities related in cryptocurrency, and it will surely be affected most especially that there are a lot of bitcoin users in the US. Bitcoin's price will become more volatile in the market because of the volume of people who manipulates it is also huge.

There are people who really engage in cryptocurrency and investing in managing bitcoin instead of their fiat, we all know that people are used to fiat in terms of many transaction and storing in the bank but as the bitcoin is in the process of mass adoption. They really use bitcoin as a store of value and some are still using gold to preserve their money.

In reality, bitcoin will give you so much profit compared to gold depending on the time or season where its price is really high compared in 2017.

Even right now if you check some exchanges you will notice that the rate of buying Bitcoin has increased more than the rate of selling, showing that more people are ready and believe in bitcoin as their safe haven.

A price is also a factor, the reason why people are buying bitcoin because of its lower price, and they will just sell bitcoin if they know that it increases its price in the market. Bitcoin is volatile that's why some people are taking the risk to buy bitcoin even if there's no certainty of when will it increase its price.

[Wexnident]

It'd probably be considered a safe asset at the least, all because compared to how the market crashed when the virus attacked, this time, it's an economic market crash. It is fully within bounds of what Bitcoin could act with, as long as well, people treat it as one. It is an asset that is reliant on what people believe it to be after all. If it was believed to be something similar to gold which is a safe asset, then you could expect it to be used in the coming recession. If it was treated as the opposite, then it'd probably lose a lot of traders. As for the other cryptos, eh, their not really a problem cause of the centralized system they have which in a sense, defeats the purpose of a cryptocurrency.

[Vishnu.Reang]

If the American economy undergoes recession, then the other countries will be affected even more. This is very evident from the fact that most of the global currencies have gone down against the US Dollar during the last few weeks. Here in India, the Indian Rupee has lost almost 8% of its value in a couple of months and the trend is looking very negative.

[betty11]

The USA don't control the cryptocurrency market, it's the people's currency and market and not owned by any central government. I don't see the USD losing its dominance soon because of the current pandemic. The USA still have a lot of grip in the global economy, the internet and high level technology still rest with the USA.

[TopExchanger]

Maybe the USA will follow Latin America's path. Now region holds the largest number of cryptocurrency users in the world merely due to hyperinflation.