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

[Sayeds56]

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.

It is true that markets determine the future price of assets in anticipation of economic events including recession. Regarding how Bitcoin would react to economic meltdown situation, it is yet to seen as it has never faced such situation since its inception in 2009. I think people are compelled to sell anything they posses during economic hardship to fulfill their basic needs of food and healthcare.

I think individuals and institutions will continue investing in Bitcoin as recession is a remote possibility. The world community has learned valuable lessons from previous recessions. Central banks of the countries like Federal reserve (FED) has range of options and tools to mitigate the risk of recession or recession like situation.

[justdimin]

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.

Gold and Bitcoin both have limited supply, which means that the price of it will go on as long as people find it valuable. There are a lot of people who think gold is valuable and it has been thousands of years like that, and some people worry that bitcoin will not be like that in the future because it's a tech thing and tech evolves whereas gold is gold, there is nothing to evolve.

But I believe that as long as we keep believing in bitcoin, then it can have a similar future, or at least in our life time which we should be careful about. So all in all, I believe it's not a bad idea to trust bitcoin to be higher, and reach to gold levels one day, not anytime soon, but it has the potential to help us during these type of periods.

[dothebeats]

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..

I agree. It's honestly the way they see Bitcoin as a simple means of earning money that makes them think that while the economy is heading into a recession so is Bitcoin. If it's going down then save it then you'll be thankful once everything goes up again in the system. It's honestly just a game of knowing what steps to take and what decision will be more beneficial to you.

[South Park]

Gold and Bitcoin both have limited supply, which means that the price of it will go on as long as people find it valuable. There are a lot of people who think gold is valuable and it has been thousands of years like that, and some people worry that bitcoin will not be like that in the future because it's a tech thing and tech evolves whereas gold is gold, there is nothing to evolve.

But I believe that as long as we keep believing in bitcoin, then it can have a similar future, or at least in our life time which we should be careful about. So all in all, I believe it's not a bad idea to trust bitcoin to be higher, and reach to gold levels one day, not anytime soon, but it has the potential to help us during these type of periods.

There is no doubt that gold is a great asset to have, but at the same time the world is becoming more and more digital and bitcoin not only offers a great asset in which you can invest, but it is also an asset you can use comfortably today as the digital nature of bitcoin makes it especially suitable to make all kind of payments online, while you can carry it and no one will ever know you are doing it unless you specifically tell people that you are doing it.

[Texac]

Gold and Bitcoin both have limited supply, which means that the price of it will go on as long as people find it valuable. There are a lot of people who think gold is valuable and it has been thousands of years like that, and some people worry that bitcoin will not be like that in the future because it's a tech thing and tech evolves whereas gold is gold, there is nothing to evolve.

But I believe that as long as we keep believing in bitcoin, then it can have a similar future, or at least in our life time which we should be careful about. So all in all, I believe it's not a bad idea to trust bitcoin to be higher, and reach to gold levels one day, not anytime soon, but it has the potential to help us during these type of periods.

There is no doubt that gold is a great asset to have, but at the same time the world is becoming more and more digital and bitcoin not only offers a great asset in which you can invest, but it is also an asset you can use comfortably today as the digital nature of bitcoin makes it especially suitable to make all kind of payments online, while you can carry it and no one will ever know you are doing it unless you specifically tell people that you are doing it.

The world is moving towards technology, which means there is still a chance that in the future bitcoin will be upgraded or something better will be created that will outperform and replace bitcoin.  therefore, it is still very difficult to surpass gold, an asset that has existed for thousands of years and there is still no one that can replace it.  this is something that I've been thinking about and don't think bitcoin will one day surpass gold. 
Bitcoin is really great because it can both be used as an asset, can be used for payments, and can be a bank for yourself.  but the tech world is always fast-moving so it's hard to be certain about the future of bitcoin.

[JeffBrad12]

honestly I guess some people just want to spare their wealth out of the recession, and it happens that bitcoin is also one of the most easiest way to fight against the inflation that might rise really high when recession hits other than some other precious metals.
really there's no proper reasoning for this, this could be fomo, it could be the fear of recession causing their wealth which initially was stored in fiat to plummet in value.
no one knows for sure but many people already seeing bitcoin as some sorts of gold alternative.

[STT]

how Bitcoin would react to economic meltdown situation, it is yet to seen as it has never faced such situation since its inception in 2009

Theres been incidents but 2008 era was a 50 year storm event its not supposed to happen like that at all in terms of preparation but even so it should be rare in its setup and the magnitude of that failure, the bailout the diversion to fiscal budgets to global accounting standards, the amount of laws passed for this failure was gigantic and once in a generation type stuff.   So Im told BTC occurred because of those decisions because we decided to divert the world not hold principals of capitalism etc.
  I presume whoever came up with BTC did so because they especially think the meltdown scenario will occur again and maybe in their lifetime ie. far too soon.   Most who saw 1929 and suffered from it didn't have to fear it would occur again but the BTC originators I believe expect a far more rapid occurrence if they have no belief in the solutions found at that time they will be correct and BTC is the attempt to mitigate and save some from that failure perhaps.  I'm not fully versed but I think that's a fair conclusion, we've had troubles since 2009 but not systemic meltdown level events

[philipma1957]

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

One post and by by.

Sad that people do this

I can think of a few reasons why the op went by by..

What is even better is btc has gone up ⬆️ up 🆙 and away .

well at least to 43k.

Simplest answer is this a miner rally much like the one in fall of 2015.