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

[escanor7384]

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

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[bittraffic]

One thing is for sure. Halving is near.
About the economy heading to recession is another thing I guess. If you have watched some Economics discussions, some of the experts are saying that this recession is a planned recession since Covid. If so then all these layoffs, bankruptcies, and company shutting down is part of the plan.

I'm not an expert on economics but when Blackrock applied for BTC spot ETF, many of its counterparts are also applying for BTC ETF which it is speculated that BTC will also pump up.

[Tytanowy Janusz]

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

BTC is pumping?

SP500 recovered 70% of 'recession/tightening dump'
NASDAQ recovered 75% of 'recession/tightening dump'
DAX recovered 100% of 'recession/tightening dump'
GOLD recovered 100% of 'recession/tightening dump' and is now in 10% correction
AI stocks at ATH (NVIDIA pumped x4 in 6 months)
NIKKE at 30 year high


bitcoin recovered only 28% from the 'recession/tightening dump' and is still 55% from ath. For Bitcoin's upside potential, it has done surprisingly little. And the fact that you expected this to be the last pump on bitcoin is only because you were not here in 2017 during the previous mania as well as in 2019 when support lines for suicides were created en masse.

[Faisal2202]

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

Do not ask forgiveness even you asked a legitimate question (of course to some it is legit and to some is not).

The pumping of Bitcoin is not yet started in serious mode, as the current spikes are due to many of reasons, and the main reason for EFTs is already mentioned by Bittraffic. so i will mention others like the adoption of crypto in different countries like Hong Kong, USA, etc. Like in HK, the government made plans to convince those who are still skeptical about crypto to invest in it. while on the other hand, amid the legal cases and bans from SEC and CFTC, the US now promoting crypto, like they announced to come up with their own crypto exchange (i think the name is EDX).

This news urges big institutional investors to invest in BTC and many institutions bought the shares from MicroStrategy which means they bought BTC indirectly. This increased the trust of other people and hype created among people. This hype has become so intense that small news is making impacts on the price of BTC now (in up trend).

As i mentioned at the start BTC is not started to take pump so this news is not enough to make big pumps happen. Let's see what we see next,

[slapper]

The current hype around CBDCs and the continued potential of cryptocurrencies can seem overwhelming unless one is actively involved. Bitcoin's tenacity and recent streak, given the global economy's state, might be surprising, yet not completely baffling.

Cryptocurrencies like Bitcoin are often termed "digital gold," a secure asset that remains aloof from typical market dynamics. This characteristic helps Bitcoin thrive even amidst an uncertain economy, making it a viable shield against inflation and market volatility.

Conversations around replacing the dollar and the rise of CBDCs fit into the larger storyline of monetary evolution. As technology propels forward, digital currencies offering security, efficiency, and universal access are growing in allure. CBDCs serve as a bridge between traditional finance and the nascent digital currency realm.

[Gozie51]

During halving, the market becomes erratic until it takes a particular position before the halving so don't be confused about that. The recession or not is not going to affect bitcoin the way you are looking at it especially now it is getting closer for the next season of bull run. Around the COVID-19 time that it was suppose to be a bear but because it just had the split, it didn't have any draw back to price increase to $64k. Bitcoin is decentralised and it doesn't really depend on the number of fiat in circulation.

[KiaKia]

You are one of those thousands of people who only see interest in Bitcoin when it's surging in price, if not you won't be asking this question.

Your worries right now shouldn't be the Bitcoin pumping in a recession, it should be you not having some Bitcoin already before the recovery.

What are you doing right now? Do you except the bad economy to keep affecting Bitcoin value for a long time until the economy is getting better?

Nothing last forever bro, hard times always fly by just as the good times too, we are in a bear market and it's not too late, do yourself a favor and start buying Bitcoin..

[flyingcarpet]

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

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.

[Zaguru12]

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

Not an economist either but it is base on one thing. Many investors during recession or inflation which is the leading indicator for recession actually look for assets that are stores of value like gold to buy just to have an hedge against the inflation, because most of the traditional currencies are mostly affected or devalued during this period. In the past people relate bitcoin as an highly risk asset so they don’t invest in it during this period but as bitcoin spreads people have actually seen that although the currency is volatile it is much better than the traditional currencies and an easy asset to buy than the usual gold, so they just go on to invest in bitcoin which result in the upward rise of the coin.

Although the above view is a general one this current pump can be accustomed to the fact that halving is fast approaching and many feel this is the right time to accumulate more before the halving which spear heads the major bull run in cryptocurrency.

[BIT-BENDER]

Firstly it depends on the economy you are talking about, also the economy of many nation did not just start to go on recession today, economy like mine has been in recession for a very long time now.

But the truth is that the rise and fall of Bitcoin is certainly not determined by the state of other nations economy. Bitcoin is independent of all that and I can understand that it's a better explanation to say people are scared of their financial future with the recession and now deciding on rather holding Crypto-currency instead.

[Fortify]

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

As with anything in the crazy world of currency and stock markets, it can be pretty much impossible to pinpoint the factors that send it in a certain direction. If people think the future is looking bright again, or that they may be able to borrow money and invest it into this asset for greater returns - then it will start to pump. Bitcoin has now weathered quite a few storms and is still standing, so it shows that it has longevity. You have the super rich who have so much money that sometimes they feel like gambling on these new assets out of sheer boredom. Celebrities might be jumping back on to the hype train, or there might be a fresh exodus of money trying to leave Russia after the recent mutiny.

[avikz]

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

I won't use the word pumping. I would rather say bitcoin price is showing signs of stability. Also I wouldn't say that the world is going into a recession just yet. US could go to recession but that does not mean the world goes into recession. What happens in US, stays in US.

The market is actually gearing up for the upcoming halving. It is expected to happen in 2024 and the new supply of bitcoin is going to be reduced. So the price of Bitcoin is expected to increase in near future. The market is just gathering momentum now. This is not pumping.

[Unbunplease]

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.

[Nwada001]

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.

[Bitstar_coin]

A little percentage growth would seem like  pump in the eyes of some people. Btc was in the 29k - 30k range before the sec allegations on coinbase and binance cause a drop on price so i can't really see this price movement as pump.

And as for recession, I didn't know some countries were already out of it, I thought most countries have been on for quite some time now, nothing imo has changed in the economy to indicate otherwise.  If more funds are flowing into btc is because people probably tired of holding fiat with less and less value unlike btc.

[franky1]

smart people heard about "inflation" in early 2021.
that was the stage when smart investors would get out their investments to stock up on real world stuff like upgrading house, new furniture new gadgets and appliances before prices rose..
however now we are in the stage where people are wanting to save their wealth again, in places that offer good interest/ROI far better then the crap amounts banks offer. because if a bank only offers 2% savings interest. but inflation is 10% then thats a minus 8% value loss per year.. so no one wants to just hoard wealth in normal bank accounts

so now people are finding things to invest their wealth in now they are not in a buying home luxury's stage

ontop of this and more directly affecting bitcoin is that the hashrate has increased the baseline value bottom .. meaning instead of a $15k bottom its has moved above $20k which then supports the speculative market above bottom to be more secure above $25k

as for thinking the last ATH was the last ATH. you are missing a few dozen more to come over the next century.. they are every 4 years roughly. (usually a year after a bitcoin halving)
so expect more to come

[jacafbiz]

It is human nature, to hope that there is still more to come from Bitcoin, so we gamble on the future we want to see. The recent ETF news brings all these positive news that creates a bullish catalyst for the price with people believing it is a good thing for the price, though there is an opposite opinion to this that this big Tradfi will do what they did to gold price to Bitcoin plus the coming halving next year which is the most bullish thing that happens to Bitcoin. I believe barring any Covid like pandemics or war the worst is over for the price, all we need is for the world economy to get better

[dothebeats]

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.

[livingfree]

CBDCs aren't yet on throne and are they will ever be on that? I don't think so but it's a normal talk to hear such about government backed projects like those.

One thing that's surprising for the new ones is that Bitcoin has always been unpredictable. We do got the beginning of the pandemic, it was also the start of Bitcoin bull run.

And if the recession is there, just as always being unpredictable. Bitcoin remains to be a good asset despite that it has plunged from the newest ATH that it got.

[South Park]

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

I think the very first thing that comes to my mind is why you thought that bitcoin will never experiment another bull run? Its adoption through the world is still on the low side, so the higher the level of adoption the higher the price, it is that simple, and about why the price of bitcoin is going up? This is precisely because the economy is not doing well, people are realizing this is the case due to the high inflation we are experimenting and they are looking for ways to diminish those effects on their finances, and they are finding in bitcoin a useful tool to protect themselves.