Why is bitcoin pumping when the economy is heading into a recession?

[kawetsriyanto]

Bitcoin is not yet pumped. It is still at a very low level in my opinion and gives a buying opportunity. I think you've heard of the halving and wondered what caused the recent spike. The reason is the approach of the halving and the expectation of a bull run. For a long time bitcoin has been in a stagnant state. So it hangs around 25-30k. In some periods, its value fell a lot, but it quickly recovered. Since the expectation of those who follow Bitcoin is that there will be a bull run in the next 1-2 years, the things mentioned may seem like bitcoin is pumping to you. We haven't seen anything yet. Bitcoin will have much better times.

Pump and dump always happened, but it may be not a very significant change. If you means bullrun season, sure it doesn't happen yet. You must know that the bullrun season is predicted to happen in 2024-2025. The significant change in Bitcoin price will come after Bitcoin halving happens, it won't happen in this year.

Bitcoin price already passed $30k, it even reached $31k a few days ago. And it looks like to survive above $30k, there is a possibility for a new resistance. So, you shouldn't mention $25k anymore, it was the price in several weeks ago. I believe Bitcoin price will stay above $29k-$30k if there is no much bad news again.

[TimeTeller]

It's barely pumping atm. It's been on this movement for a few weeks now and you can't say that it's performing really well since it just managed to stay on this level despite some selling pressure. It's more of a sideways market, not something that will really penetrate the ceiling and get the price to higher highs. It will take a lot more pressure on the buyer side of things for a bull run to happen. Right now, it's as dormant as it gets.

In any case, it is good that people are being optimistic on this market.
It has been like a year of waiting to reach this 30k level again, so I can agree that some people are happy about this.
Because if you look at the bitcoin chart, we are finally far from the 17k range and so far, we are heading upwards again.
It may not call for a celebration for this market, but people are getting positive vibes because of this development.

[komisariatku]

When economic conditions are not healthy, this is where investors need new instruments to continue to make profits. Bitcoin is the "considered" best alternative when the world is facing a recession. It's like during the Covid-19 pandemic, many economic sectors were paralyzed, but Bitcoin even reached a new ATH

While there's no guarantee that the same thing will happen, many observers speak that way. If you look at the history of bitcoin prices, bitcoin always reaches a new price every few years, even though there have been many price declines, bitcoin's achievements have been very good. That is the reason many investors are interested in bitcoin

In my opinion, bitcoin has become an investment instrument for many people. The profit you get from bitcoin can be more than just investing in any sector. You also don't need to be afraid that bitcoin will go bankrupt, bitcoin will never go bankrupt because nobody controls bitcoin. The bitcoin community is very strong and growing every day. That is a good reason to invest in bitcoin, because bitcoin will never go bankrupt

[Wiwo]

Forgive my ignorance, I am very new to this space. I saw talks about CBDCs and that drew my attention back to cryptocurrencies. I thought the last bull run would be the last we would have seen of bitcoin ever reaching those heights so I stopped looking at the crypto space ever since. But now we have discussions about dethroning the dollar and CBDCs, I am changing my mind about that, but I still find it fascinating that bitcoin is pumping in this economy right now. I am by no means an expert in economics as you can clearly tell, would appreciate it if anyone who knew could shed some light here. Always keen to learn. Thanks

The fact is that bitcoin is gaining momentum right now and at that, the entire economy is battling with inflation and the currency is becoming worthless,  and for that it very clear to all to know that bitcoin has become the only store of value same like gold but in a digital format,  so since bitcoin is anti-inflationary in nature,  it then becomes clear to all to know that while the economy battle with recession and other economic problems,  bitcoin is busy making and breaking new ground.

So there are no other economic terms that we can use to explain this other than Bitcoin being an anti-inflationary currency,  and since Bitcoin have a calculating supply of 21/million it then becomes hard for it to be inflated.

[panganib999]

Blackrock’s ETF was just approved by SEC, as well as a couple distinctions made by  the commission regarding the fact that they do not see bitcoin as a threat and will therefore not take any counteractive measures against it in the future. All of this lead to bitcoin pumping in value from 23k to 30k in a span of days. Although I myself don’t believe thet this is enough a catalyst to start the next bull run, considering that we’re still pretty much stuck in a mire and the only saving grace we have in guarantee is the halving which will jot come at least until 2024. In any case, sustainable or not it’s still a spectacle and a welcome one a that too!

[nesty]

Bitcoin has been seen as a safe haven asset similar to gold, during times of economic uncertainty. Investors may be turning to Bitcoin as a way to hedge against inflation and protect their assets in the face of market volatility. There have been growing trend of institutional adoption of bitcoin and other cryptocurrencies. This helped bitcoin as a viable investment option, which could be driving up demand. Some investors maybe buying because they believe that its price will continue rise, rather than any fundamental value. Maybe that is the reason why bitcoin is pumping though economy is heading into a recession.

[Wexnident]

Soo are we just going to forget the dump that Bitcoin had to 18k-ish a few months back? I hardly doubt there was a big influence here imo other than simple supply and demand. We wouldn't exactly see Bitcoin plummeting to the ground due to investors losing confidence in it, a lot of people still trust it (the dip to 18k was simply due to the ath bubble popping imo).

And even if we do consider recession, Bitcoin has been likened to assets like Gold that can avoid depreciation of fiat. It's been pretty stable as of lately as well with no big dumps (or pumps, sadly)

[Swordsoffreedom]

I believe Bitcoin price is to some point not being moved by economy down fall, even when the world is experiencing some sort of global recession, Bitcoin seems to always be of a great resistance to some point. I believe this is as a result of most investors trying to pull their funds from the banking sector and other investments that are tied to economic growth and reinvest them in Bitcoin in order to escape inflation. When the demand for Bitcoin increases, there is always a higher possibility for us to see a positive price movement. Just as the ETF news has done to the price in the past few days.

Do you see any assets that can avoid the impact of the economy? Bitcoin is no exception because bitcoin can exist and work for our needs, and we are part of the world economy. Even a stable asset like gold cannot escape the economy's influence, a speculative asset like bitcoin will never escape the impact of the economy.
There is no evidence that many people are leaving the banks and transferring their money to bitcoin. If that happens, why hasn't the bitcoin price pumped and surpassed the old ATH yet? In the future, bitcoin may be an alternative to banking, but it will never be able to become a complete replacement for banking.

[Despairo]

What's recession? I don't see any recession, the fact is the current economy is opposite than what you and other people are expecting.

The recent of Bitcoin pump caused by BlackRock's Bitcoin ETF was proved by SEC, however the price might slowing down after next few weeks if there's no big good news for Bitcoin. I wouldn't expect any other pump in this year because the halving will happen in the next year.

[adaseb]

It’s not only Bitcoin. Have a look at the nasdaq index and see how close it is to the ATH. Why would it be pumping when we are suppose to be in a recession?

Well nobody knows when the recession will start. Could be another year. The yield curve inverted a long time ago and still no recession. I would say until we get a confirmed recession then Bitcoin and stock markets will keep rallying.

[mindrust]

The FED never did and never will stop printing money. Even when they were burning USD, they were also printing at the same time. The US has so much USD debt and so little export (compared to their debts)… that means they can only pay their debts if they print money. And we have seen this with the last “debt ceiling” debate. They simply have no other choice. It is either print or go bust and you know what? Printing money is a way to reach bankruptcy too. It is just a slower process.

Where is bitcoin in all that? Bitcoin has a hard cap on the supply, USD does not. It is only natural for bitcoin to go up against the dollar.

[rat03gopoh]

I think you capture the wrong moment about Bitcoin pumped where it happens when the world is out of the recession (there is a reverse conclusion in your perspective). Or you're willing to at least tell us in what country your base, which is likely your country is included in the lowest ranking row which is the latest reconstructing the economic crisis.
Plus, CBDC has nothing to do with Bitcoin prices.

[Kakmakr]

The theory is that when the Fiat financial system is in a recession or if there are problems in the Fiat financial system, then investors and speculators are looking for alternative investments or safe havens. Now, I am not saying that Bitcoin is a good store of value, but it is decent enough for those investors to risk investing money into it.

We saw this happening in countries like Greece and Cyprus and also in Zimbabwe, when they were faced with problems in their economy. (Hyper inflation scenarios)  

[killerfrost]

There is a lot to be said about news issues that affect prices, but my observation is that most markets have their own volatility, as the title says, I don't see the point here, Since the crypto (btc) market has been volatile ever since, I think we will all feel that it is small in size given its high volatility in the news.
Regarding some of the hyped concepts like CBDC, I don't have too much thought about it but I understand it has been and is still evolving, as an investor I think the story of this will really bring. Whether the value is positive or not takes time to compare, because actually I have been with a number of fields related to this field and feel that it is more exaggerated than the price they offer.

[Onyeeze]

When there are problems in the economy, people start looking for ways to keep their savings. Bitcoin has long shown that sooner or later the value of bitcoin recovers. That's the property of a protective asset. So people start buying bitcoin, and the price rises accordingly.

That should be true when ever people notice that their is a crisis or recession in economy they began to go the place that will be favourable for them to have recovering or back their money during the recession and they are seeing bitcoin as asset to put in their money so that it their money will be valuable in for of economy recession,  but bitcoin is not an asset that always prosper and I have seen in that because the market is not always flourishing as expected,  so what do we think that make a bitcoin asset and why people is afraid of economy recession and focus on bitcoin investment as an asset that can rescue them during economic recession

[WatChe]

The fact is that bitcoin is gaining momentum right now and at that, the entire economy is battling with inflation and the currency is becoming worthless,  and for that it very clear to all to know that bitcoin has become the only store of value same like gold but in a digital format,  so since bitcoin is anti-inflationary in nature,  it then becomes clear to all to know that while the economy battle with recession and other economic problems,  bitcoin is busy making and breaking new ground.

So there are no other economic terms that we can use to explain this other than Bitcoin being an anti-inflationary currency,  and since Bitcoin have a calculating supply of 21/million it then becomes hard for it to be inflated.

Bitcoin is not anti-inflation rather it has controlled inflation, the 20 million total bitcoin will slowly join the circulating coins. TBH right now there is no one-to-one comparison between Bitcoin and the real world financial system that is based on Fiat. The pumping of bitcoin and global recession are not directly linked together. The current bitcoin bull run is mainly because of blackrock ETF that is very soon to be launched while global recession comes and disappears after sometime, we have to wait and see about how long current recession last. 

[Wiwo]

Bitcoin is not anti-inflation rather it has controlled inflation, the 20 million total bitcoin will slowly join the circulating coins. TBH right now there is no one-to-one comparison between Bitcoin and the real world financial system that is based on Fiat. The pumping of bitcoin and global recession are not directly linked together. The current bitcoin bull run is mainly because of blackrock ETF that is very soon to be launched while global recession comes and disappears after sometime, we have to wait and see about how long current recession last. 

I agree with you because the recession has faced and we have what we call post-recession economic decline,  and every country that has gone through the recession will have to face that challenge, the post-recession economic crisis. Worst than the first stage of recession and this has affected most countries' economy.

Just like you said let's wait and see what becomes our reality with bitcoin ETF which is around the corner whether it ends like the other hypes that have come up before because we don't know what the reaction of bitcoin users will be and whether they will be willing to buy in into the idea of third-party custody which is the exchange.

[Jating]

I guess by now we have the answer, despite where the economy is heading or if we are in a recession, the bitcoin market doesn't care. What investors did is to pump it hard because of the BlackRock news and it seems it has somewhat remain above $30k at the end of this month when everyone thought that June might be negative again.

So again, whatever happens to the global economy, if it goes worst, then bitcoin could be a hedge against recession as it will be seen as a store of value. Just like what happen in the pandemic in 2020, although we have the Covid-19 scare, still the price pumps so hard till 2021.

[Cookdata]

Forgive my ignorance, I am very new to this space. I saw talks about CBDCs and that drew my attention back to cryptocurrencies. I thought the last bull run would be the last we would have seen of bitcoin ever reaching those heights so I stopped looking at the crypto space ever since. But now we have discussions about dethroning the dollar and CBDCs, I am changing my mind about that, but I still find it fascinating that bitcoin is pumping in this economy right now. I am no means an expert in economics as you can clearly tell, would appreciate if anyone who had the knowledge could shed some light here. Always keen to learn. Thanks

In the last bull run, I don't think so. There is more bull run that will come after tbe last one but you should know that the exact time is not assure but we all know that the time frame is always between pre halving and post halving, all coins pump between that frame and that's when everyone jumped into the markets and then we will see another news everywhere.
Bitcoin and economic was somehow related during Corona period because there was corellation between S&P500 and Bitcoin back then but I think their shoulder relationship is over, as Bitcoin halving approaches, by its virtue it should pump whether the economy is stable or not, so sit tight and don't buy into CBDC speculations or dominating the digital currency.

[FrozenBit]

Some of the links between the CBDCs of many countries recently and the crypto market I think is just an adaptation and reconciliation of the traditional economy (fiat's limitation) and can also turn the market crypto into a separate market like gold or stocks. Evidently some of the arguments I've heard about crypto before are like crap on the internet, after five years what it does here is not just about the economic market, and looking at the technology side clearly. We easily see many products that really bring applications to life. Regarding price fluctuations, as some points of view, to me, the market is still small and volatile, so it's not really clear when we just think that the economic downturn will limit the area of ​​life, so this is quite normal.