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

[Unbunplease]

The economy of every country mostly the third world countries are heading to recession and they have been in this lane of recession for so long and I can say that are used to it and that is why it doesn't affect their investment ability.
Bitcoin is known largely for resisting inflation but most times it has been proven that bitcoin is very sensitive to the happenings in the economy.
For pumping when then economy is not fine should be attributed to the halving rumour and halving that is approaching. Halving has the ability to form a fundamental that will defy the current economic arrangement.

Considering the possible imminent launch of BlackRock, the probability of bitcoin price growth amid the halving is very high. Talks about recession will give additional stimulus for growth. So the next six months to a year could be very interesting.

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[hannahB4]

The economy that you said in a recession might depend on the country and economy that you meant. I don't think bitcoin price depends solely on the economic condition because if it does it could have become zero as some countries have been in recession for up to five years now.

[|MINER|]

 There are some things that don't get worse no matter how bad the economy gets. And as an example you can take gold as its price has only been increasing for ages. And I also think that bitcoin is the digital gold. And that's why even if the economy is going bad, Bitcoin is not going that way, Bitcoin is going by its own rules. And it's not the fiat currency that will go recession with the economy.

[superman184]

The economy that you said in a recession might depend on the country and economy that you meant. I don't think bitcoin price depends solely on the economic condition because if it does it could have become zero as some countries have been in recession for up to five years now.

And Bitcoin is also independent of users from several countries that have been in recession for up to five years. Because in general Bitcoin has been used by many people around the world which includes almost all countries in this world. So that Bitcoin will also not easily become zero if there are still citizens who continue to use it regardless of the ongoing economic recession. Right now there are indeed several influences that can cause Bitcoin to crash in the market, that is negative news about Bitcoin, the bad economy also includes excessive panic among large investors.

[usekevin]

When the economy get bad,some large money holders will inverse their money in crypto currency.So the demand for the bitcoin in cryptocurrency will increase.This leads to the demand pull market and the price of bitcoin will automatically increases.This is main cause for the bitcoin price pump at the bad economic situation.The fiat value is stable and crypto currency market will continue to increase with the increase in price of bitcoin.Because market depends on the bitcoin since bitcoin ruling current crypto currency market.

[FinneysTrueVision]

Mainly it's due to speculation. If an ETF gets approved it could mean there will be greater interest from institutions that want to invest in Bitcoin. A stamp of approval from the SEC would make it harder for regulators, and Bitcoin detractors in general, to make an argument that Bitcoin is bad and we need to pass laws in order to "protect investors".

The halving is also near. Fewer coins mined combined with greater desire from investors is the classic supply & demand scenario.

[mindrust]

The economy that you said in a recession might depend on the country and economy that you meant. I don't think bitcoin price depends solely on the economic condition because if it does it could have become zero as some countries have been in recession for up to five years now.

In other words, just like stocks, bitcoin is not the economy. Bitcoin (and stocks) can go up and down freely based on supply and demand. Sometimes there are too much supply and so little demand so bitcoin starts to go down, sometimes it is the other way around. There are always big whales that want to manipulate the markets. Their main goal is to make money of course. These people don't care about the economic downturns.

[YUriy1991]

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.

It may sound common that the price of Bitcoin is influenced by many factors. including the birth of positive or negative market sentiment, regulations, and others. Referring to what you said above, the price of Bitcoin is not determined by the state of the economy of other countries, but it is not certain that Bitcoin will always perform well during a recession. Btw, this is not a prediction, but I think there is a possibility that BTC will move down to the 28k - 29k area in the near future, maybe in the next 1-2 days.

[Sayeds56]

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.

Indeed, Bitcoin is widely recognized as hedge against inflation due to its limited supply, that's why  Investment in Bitcoin is considered an attractive opportunity for transforming one's life. therefore, we should accumulate more Bitcoins,  Whenever it goes in significant dips. From a technical perspective, the current price of Bitcoin hovering around $30,257 is considerably higher than 21 days Moving average on technical chart. this is indicating  bullish sentiment, and if sustains this price for few few weeks, it is likely to surpass $31,600 which is a strong resistance.

[KingsDen]

...

Considering the possible imminent launch of BlackRock, the probability of bitcoin price growth amid the halving is very high. Talks about recession will give additional stimulus for growth. So the next six months to a year could be very interesting.

It could be very interesting indeed. I have never seen this type of hype accompanying a halving. I was scared before now that what if halving bull run fails. It Will indeed have so many negative consequences such as bitcoin will not be able to make a new ATH.

But with the preparation and readiness for halving by both individuals and organisations, it is going to be interesting and dramatic. I so much believe that most people will miss the timing. Maybe they will arrive earlier or later.

[irhact]

There are some things that don't get worse no matter how bad the economy gets. And as an example you can take gold as its price has only been increasing for ages. And I also think that bitcoin is the digital gold. And that's why even if the economy is going bad, Bitcoin is not going that way, Bitcoin is going by its own rules. And it's not the fiat currency that will go recession with the economy.

Gold has a finite supply because we can only mine the gold on earth and one day there won't be any gold to mine anymore this is why gold is considered an asserts, Bitcoin also has a finite supply as well so this assets can always be moving in an opposite direction of where the economy is heading. People are looking for where to invest their money and this assets are the best things for investment at the moment.

The recent pumps of the market is in response to the halving of Bitcoin reward that's been scheduled for 2024, since that's just next year investors are buying Bitcoin and this act will keep making the price to rise. The recession has nothing to do with the rise of bitcoin.

[Promocodeudo]

When there is economic woos in any country, people start looking for alternative and trusted means for saving their fiat.

Bitcoin is pumping because people see it as a good asset, which has rekindled their hope towards a digital experience, thereby making them experience the most reliable and transparent way of storing their digital money safely and having access to it whenever they need it.
 
Bitcoin is currently experiencing more investment in it, because people have seen the innovation is, and the benefit that is attached to it.

Some people don't know what digital currency is, but because of the information they got from friends, colleagues, or social media, they decide to give Bitcoin a benefit of the doubt to know how true it is, and when they make try and it gives them what the want, they tell people and this, in turn, makes people withdraw their money from banks to invest in it, this currency depends on peoples participation, the more participants it attracts, the more it pumps, statically Bitcoin has more participants currently, and this has increased the demand too, so it will pump irrespective of any recession.

[Sayeds56]

Gold has a finite supply because we can only mine the gold on earth and one day there won't be any gold to mine anymore this is why gold is considered an asserts, Bitcoin also has a finite supply as well so this assets can always be moving in an opposite direction of where the economy is heading. People are looking for where to invest their money and this assets are the best things for investment at the moment.

The recent pumps of the market is in response to the halving of Bitcoin reward that's been scheduled for 2024, since that's just next year investors are buying Bitcoin and this act will keep making the price to rise. The recession has nothing to do with the rise of bitcoin.

Indeed, Gold has infinite supply on earth and its mining will eventually become more challenging. It is also important to note that Gold has been used for centuries as medium of exchange, valued for its beauty and scarcity. In this perspective, it will be correct to assume that its value may potentially increase overtime. On the other hand Bitcoin also has limited supply, hence both Gold and Bitcoin are stores of value while Bitcoin has edge over Gold for fast and low transactions form one to another account.

The recent surge in crypto currencies market can be contributed to positive developments regrading spot ETFs, and downwards trend in inflation beside upcoming halving event in year 2024.

[AbuBhakar]

When there is economic woos in any country, people start looking for alternative and trusted means for saving their fiat.

Bitcoin is pumping because people see it as a good asset, which has rekindled their hope towards a digital experience, thereby making them experience the most reliable and transparent way of storing their digital money safely and having access to it whenever they need it.
 
Bitcoin is currently experiencing more investment in it, because people have seen the innovation is, and the benefit that is attached to it.

This is on point explanation. Bitcoin is inflation proof because it has limited supply and not connected to unlimited fiat. The more fiat value become lesser the more Bitcoin price will grow exponentially. Bitcoin is the best asset to inflation because it will keep growing due to the increasing demand due to recession and limited supply that create scarcity for the price to pump hard.

[Yatsan]

We often see this whenever usd is falling. I think it is bwcause many people are having thoughts that cryptocurrencies has a higher tendency for a price increase such as with what happened last month.Quite of a domino effect as well wherein many people are now preparing for the next bullrun simply to earn profit from doing so. Eitherway, it is good to see that more people are putting their trust in this industry. There are even banks which are considering adoption of this technology. And if this would continue, we'd be closer to the day that manu institutions and people are using cryptos as a mode of payment.

[umbara ardian]

Typically, in an unstable economic environment, investors seek safe assets like gold to protect their value and prevent the negative impact of inflation on traditional currencies. Bitcoin has shown us the potential to be an attractive asset during this period. Despite its high volatility, it is viewed as a safe asset unaffected by traditional market factors. The growth of Bitcoin has changed the opinion of many, as it is seen as a new and more effective approach to protect asset value during recessions and inflation. That's why people continue to invest in bitcoin despite economic inflation.

[GeorgeJohn]

While bitcoin is pumping unexpectedly is because bitcoin its seen as asset and many people who invest in bitcoin always come up with a good news to influence others, and I believe that is while the market of bitcoin is getting productive, many people are looking for a source where their fiat currency will be a little bit difference from saves and that is while they are investing in bitcoin, and it's obvious that when investors come up massively to invest in bitcoin it triggers the acceleration of the price, so many people has find out bitcoin is an asset that it's the reason we are experiencing an increase in the market

[ancafe]

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.

We will see the halving getting closer from the four-year cycle process, although we cannot predict exactly when it will take place. Analysts have tried to make some predictions regarding the new price jump from the previous ATH and there may be many factors for this happening.

But now we have discussions understand 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 don't really understand about the essence of the question you asked? When talking about the world economy, the downturn is seen when recessions and inflation occur and these conditions do not always have a special relationship with the pumping or decline in bitcoin, because maybe other factors can also affect bitcoin's journey on the market.

In theory when inflation and recession occur, stability related to the value of fiat currency will depreciate, this occurs because of rising prices of goods that cannot be controlled. Bitcoin actually experiences conditions that are far different from fiat currencies and maybe you can see historically the process in the year the pandemic occurred, because that's where you will find answers to how bitcoin was able to maintain its value.

[Vaculin]

Bitcoin has nothing to do with CBDCs or with government’s fiat. If they fail in the process and drop their value, then bitcoin has also its own fate. And it’s fate is to continuously rise in the process, making its value 5x or 10x from its present. Most especially that halving is near, then bitcoin will create a very reasonable price everytime bitcoin halving is happening. Though I can’t assure everyone that what happened before when bitcoin halving is around will still be the same up to these days.

[STT]

I wouldnt try to argue Gold has a finite supply but its limited by its wide distribution.  In theory Platinum or similar level metals are more rare however the distribution is far greater in some parts of the globe which makes it unreliable for usage by all parts of the globe, it has its own bias.  To obtain gold takes time and energy to do so, some people relate that to the process by which most BTC was acquired then distributed.    Because of industrial advances far more gold was mined in the last century then ever before that when things were far more simple so we might presume more is available in future but also I think demand too.   BTC is different in that supply is definitely falling.
   Markets move ahead of current news, quite alot of the market is speculation of future prices so if a recession does register today it has to be unexpected in some way or magnitude.