Surge in Bankruptcy Filings And Economic Crisis Vs Recession Vs BTC Price

[lombok]

https://twitter.com/WhaleWire/status/1705776976089256341?t=PtzaGiRaDcbdjzwFDYF3Bg&s=19

There is data from WhaleWire regarding the surge in corporate bankruptcy filings which reached the same level as past economic crises such as the Great Recession in 2008 and the pandemic in 2020. This certainly raises concerns for the world economy.

And periods like this historically occur before significant stock market crashes. Will this affect the price of BTC too. If the entire market falls, does it rule out the possibility that there will be a sell off too? and of course BTC will also be affected?

Share your opinion

[Don Pedro Dinero]

When I registered on the forum the general belief was that a crisis would favour bitcoin but if we see that in March 2020 it went down like all financial assets and that the inflation crisis and rate hikes by central banks have not been good for it either, I doubt that if we enter a crisis like the one in 2008 the price will react well.

What I am pretty sure of, however, is that if that happens the central banks will change their policy, print again as if there is no tomorrow and that will be good for the price of bitcoin, the post-crisis, where much of that printed money will flow into bitcoin.

[crwth]

This like somewhat trickled my brain because of the possibility of another downfall because of the panic or something. I'm afraid that it could be a different thing or maybe be faster but it's not something that we can really predict unless it happened already. It's always going to be that way.

Since it's about the bankruptcy filings, maybe it's a sign that those startups that started in 2020 could have completely gone bankrupt and not done anymore about it. A lot of ideas have floated and gone so it could be those things as well.

I'm pretty worried about BTC now, maybe it's time to cash out? Lol.

[adaseb]

Yeah it’s not looking good. Pretty soon the employment data will show this. Many of these are most likely due to the high interest environment.

People got into debt when it was cheap and when it started to rise, they felt the pain and couldn’t keep up. It’s going to be worse since it looks like there will be another hike before the end of the year. And it will get worse if layoffs start to happen.

[lombok]

I'm pretty worried about BTC now, maybe it's time to cash out? Lol.

cash out at the current BTC price? You are sure? 🤣 I'm sure you have doubts too 😅

This like somewhat trickled my brain because of the possibility of another downfall because of the panic or something. I'm afraid that it could be a different thing or maybe be faster but it's not something that we can really predict unless it happened already. It's always going to be that way.

Since it's about the bankruptcy filings, maybe it's a sign that those startups that started in 2020 could have completely gone bankrupt and not done anymore about it. A lot of ideas have floated and gone so it could be those things as well.

Many young startups cannot survive due to Covid and this is made worse by the still bad economic situation. Even if this happens sooner, I'm sure there is still one place to survive, Gold or Bitcoin, but I doubt stocks.

Yeah it’s not looking good. Pretty soon the employment data will show this. Many of these are most likely due to the high interest environment.

People got into debt when it was cheap and when it started to rise, they felt the pain and couldn’t keep up. It’s going to be worse since it looks like there will be another hike before the end of the year. And it will get worse if layoffs start to happen.

This will have a negative value if worse things happen when the data is released. This shows that the crisis caused by Covid is still having an impact and has not been handled properly. Printing money is not a solution but this will continue to be done as a temporary solution without realizing that this will continue to make the situation worse.

[Beerwizzard]

Well, if we apply technical analysis to the chart then we can say we are approaching a significant resistance level.  We may hope the resistance would not be broken and the amount of filings will bounce back. And for the time being, the US economy is doing pretty well. Therefore, if the number of filings don't go further, we may say that we are close to the bottom of the downtrend and within the next year we should see a reversal.
 

[Tytanowy Janusz]

And periods like this historically occur before significant stock market crashes

WHAT?!

Bankruptcies peaks are at market bottom. The market is always pricing in the future. When things get bad in a company, insiders are the first to sell, dragging prices down. A company's bankruptcy usually occurs at the bottom, when you can't finance yourself by issuing new shares and only retail people are left with the shares, without any knowledge of what's going on. Look at your chart. "2008 great recession" spike is located in 2009 while market dump started in 2007. In 2009 we hit the bottom and started to recover. Same in "2020 covid pandemic crisis". Your chart shows the end of 2020 and the market bottomed in March 2020, i.e. half a year earlier. This chart is an indicator of the bottom and not something that should cause concern.

[lombok]

And periods like this historically occur before significant stock market crashes

WHAT?!

Bankruptcies peaks are at market bottom. The market is always pricing in the future. When things get bad in a company, insiders are the first to sell, dragging prices down. A company's bankruptcy usually occurs at the bottom, when you can't finance yourself by issuing new shares and only retail people are left with the shares, without any knowledge of what's going on. Look at your chart. "2008 great recession" spike is located in 2009 while market dump started in 2007. In 2009 we hit the bottom and started to recover. Same in "2020 covid pandemic crisis". Your chart shows the end of 2020 and the market bottomed in March 2020, i.e. half a year earlier. This chart is an indicator of the bottom and not something that should cause concern.

In general, this means that we are at the bottom of any market, if we look at the history of the picture, which shows that if the graph in the picture starts to decline, it means that the market has started to recover and improve. Maybe for people who don't really understand these graphs like me, they will panic a little, after hearing your explanation, maybe this worry will start to subside.

[Zlantann]

And periods like this historically occur before significant stock market crashes. Will this affect the price of BTC too. If the entire market falls, does it rule out the possibility that there will be a sell off too? and of course BTC will also be affected?

Share your opinion

Bitcoin price is determined by the law of demand and supply. If the world economy is in turmoil people might not have money to buy Bitcoin and other might have to dump the coin which means the price will reduce. And the public will prefer to invest in more stable commodities. Unfortunately, Bitcoin is now connected to the global economic system, and financial issues like the performance of stocks and interest rates (especially in the US) affect the price. If the economy of the world crashes the Bitcoin ecosystem will be heavily affected.

I'm pretty worried about BTC now, maybe it's time to cash out? Lol.

It all depends on your buying price and the plan you have for your holdings. Selling now is not an option because it would cause a big loss to some people. I have confidence that regardless of how the price falls, Bitcoin will still rise. it will only take some time and hodlers should have patience.

[Jawhead999]

This will have a negative value if worse things happen when the data is released. This shows that the crisis caused by Covid is still having an impact and has not been handled properly. Printing money is not a solution but this will continue to be done as a temporary solution without realizing that this will continue to make the situation worse.

It's not because Covid anymore, but Russian invasion to Ukraine which still not cleared yet. This make the fuel and foods price increase due to shortage, the best solution is Russian need to back and end this invasion. If it's still continue, we will face more hard time because inflation keep rising.

I think Covid news is already gone, although the infection is still possible.

[lombok]

Bitcoin price is determined by the law of demand and supply. If the world economy is in turmoil people might not have money to buy Bitcoin and other might have to dump the coin which means the price will reduce. And the public will prefer to invest in more stable commodities. Unfortunately, Bitcoin is now connected to the global economic system, and financial issues like the performance of stocks and interest rates (especially in the US) affect the price. If the economy of the world crashes the Bitcoin ecosystem will be heavily affected.
 

I think your answer is very relevant regarding BTC price movements in the world economy. What I feel is that any important US data releases, in particular, have a volatility impact that can cause BTC price movements.

It's not because Covid anymore, but Russian invasion to Ukraine which still not cleared yet. This make the fuel and foods price increase due to shortage, the best solution is Russian need to back and end this invasion. If it's still continue, we will face more hard time because inflation keep rising.

I think Covid news is already gone, although the infection is still possible.

Ah yes, I forgot about the Russia vs Ukraine war. It's true that oil prices in my country have just risen and food has also risen. I also trade vegetables and fruit at the traditional market near where I live and it is very difficult to make a profit these days.

If the war continues and breaks out in a big way, I don't know what the fate of stocks and crypto, especially Bitcoin, will be like. But I hope this will be over soon because many will suffer.

[Ucy]

........

There is data from WhaleWire regarding the surge in corporate bankruptcy filings which reached the same level as past economic crises such as the Great Recession in 2008 and the pandemic in 2020. This certainly raises concerns for the world economy.

And periods like this historically occur before significant stock market crashes. Will this affect the price of BTC too. If the entire market falls, does it rule out the possibility that there will be a sell off too? and of course BTC will also be affected?

Share your opinion

Bitcoin is nolonger tethered to such economic fundamentals. It's currently tethered to its own ideals.
People who had influence over Bitcoin in the past were the wrong kind of people who heavily depended on the centralized financial system to influence it.  When something unpleasant happened to the financial system it affected Bitcoin negatively. Things has changed for good as Bitcoin was disconnected from the bad system and connected back to its true purpose which is what will determine how well it does in the future.

A failing centralized financial system won't affect Bitcoin negatively. It's expected that people who depend on the system will move over to Bitcoin as the system fails gradually.
 

[Spaceman1000$]

https://twitter.com/WhaleWire/status/1705776976089256341?t=PtzaGiRaDcbdjzwFDYF3Bg&s=19

There is data from WhaleWire regarding the surge in corporate bankruptcy filings which reached the same level as past economic crises such as the Great Recession in 2008 and the pandemic in 2020. This certainly raises concerns for the world economy.

And periods like this historically occur before significant stock market crashes. Will this affect the price of BTC too. If the entire market falls, does it rule out the possibility that there will be a sell off too? and of course BTC will also be affected?

Share your opinion

I don't think there will be a stock market crash anymore at the moment, generally speaking the effect of economic crisis, recession and inflation is already here as we speak, nations struggling economically to manage the situation, so i believe we are at the breaking point of coming out of this ugly situation globally.

So the entire market will not fall, at the heat of COVID-19 the entire market didn't fall, how much more now that nations and global economy is trying to stabilise.
Bitcoin has stood the test of time, all this inductions will not stop the value and rise of bitcoin in market.

[Aanuoluwatofunmi]

https://twitter.com/WhaleWire/status/1705776976089256341?t=PtzaGiRaDcbdjzwFDYF3Bg&s=19

There is data from WhaleWire regarding the surge in corporate bankruptcy filings which reached the same level as past economic crises such as the Great Recession in 2008 and the pandemic in 2020. This certainly raises concerns for the world economy.

And periods like this historically occur before significant stock market crashes. Will this affect the price of BTC too. If the entire market falls, does it rule out the possibility that there will be a sell off too? and of course BTC will also be affected?

Share your opinion

It's true that when we look back to the previous economical crisis we had with the natural pandemic, we can see how bad the entire world economy had been affected, many organizations and businesses have recovered from this while a large number of some others are yet to find their bearing to a unified direction after this, then the question rises that whom to blame, naturally things occur and they became inevitable for us to bear their consequences as we've seen with the pandemic, but what are the way forward for us through this, what plan do we keep to serve an a second choice for a survival, all eggs must not be in a basket.

[Sayeds56]

When I registered on the forum the general belief was that a crisis would favour bitcoin but if we see that in March 2020 it went down like all financial assets and that the inflation crisis and rate hikes by central banks have not been good for it either, I doubt that if we enter a crisis like the one in 2008 the price will react well.

What I am pretty sure of, however, is that if that happens the central banks will change their policy, print again as if there is no tomorrow and that will be good for the price of bitcoin, the post-crisis, where much of that printed money will flow into bitcoin.

I held the similar views about Bitcoin that its price will surge during the economic crisis, when I first ventured into the world of Bitcoin investment back in 2017. However, during the course of my journey, I learned that Bitcoin has very strong correlation with stock market and both markets are indeed influenced by CPI data or interest rate announcements. This correlation suggests that general public tends to sell various assets in their possession, including Bitcoins, during the period of economic crisis to fulfill their basic needs.

Regrading surge in bankruptcy filing, it is very disturbing development. I believe this issue may find some solution when FED starts reducing the interest rates in an effort to stimulate economic growth.

[DVlog]

When I registered on the forum the general belief was that a crisis would favour bitcoin but if we see that in March 2020 it went down like all financial assets and that the inflation crisis and rate hikes by central banks have not been good for it either, I doubt that if we enter a crisis like the one in 2008 the price will react well.

What I am pretty sure of, however, is that if that happens the central banks will change their policy, print again as if there is no tomorrow and that will be good for the price of bitcoin, the post-crisis, where much of that printed money will flow into bitcoin.

I held the similar views about Bitcoin that its price will surge during the economic crisis, when I first ventured into the world of Bitcoin investment back in 2017. However, during the course of my journey, I learned that Bitcoin has very strong correlation with stock market and both markets are indeed influenced by CPI data or interest rate announcements. This correlation suggests that general public tends to sell various assets in their possession, including Bitcoins, during the period of economic crisis to fulfill their basic needs.

Regrading surge in bankruptcy filing, it is very disturbing development. I believe this issue will may find some solution when FED starts reducing the interest rates in an effort to stimulate economic growth.

Isn't it a common practice to sell assets during an economic crisis? It is true that the stock market and bitcoin have a strong correlation, and they both react to certain economic factors. There are people who think if they invest in the stock market, they won't get their money back, and there are people with the same mindset towards bitcoin as well.

Missmanagement and corruption are the reasons behind this bankruptcy, and there are some internal bad actors as well.

[Gozie51]

I don't think this bankruptcy and troubled economic situation will have that kind of effect on bitcoin price at least not now that most people have DCA in btc in expectation of btc price surge after halving next year. Moreover, in 2020 COVID-19 didn't bring the price of bitcoin. In fact bitcoin became safe heaven for investors who feared their fiat would be worthless as inflation was gradually increasing because economies got shot down leading to increase in prices of goods. So I don't think bankruptcy will disrupt the price increase of bitcoin because investors would like to leverage fiat they have on btc and that should cause more appreciation of price of btc.

[cabron]

When I registered on the forum the general belief was that a crisis would favour bitcoin but if we see that in March 2020 it went down like all financial assets and that the inflation crisis and rate hikes by central banks have not been good for it either, I doubt that if we enter a crisis like the one in 2008 the price will react well.

What I am pretty sure of, however, is that if that happens the central banks will change their policy, print again as if there is no tomorrow and that will be good for the price of bitcoin, the post-crisis, where much of that printed money will flow into bitcoin.

I held the similar views about Bitcoin that its price will surge during the economic crisis, when I first ventured into the world of Bitcoin investment back in 2017. However, during the course of my journey, I learned that Bitcoin has very strong correlation with stock market and both markets are indeed influenced by CPI data or interest rate announcements. This correlation suggests that general public tends to sell various assets in their possession, including Bitcoins, during the period of economic crisis to fulfill their basic needs.

Regrading surge in bankruptcy filing, it is very disturbing development. I believe this issue will may find some solution when FED starts reducing the interest rates in an effort to stimulate economic growth.

Isn't it a common practice to sell assets during an economic crisis? It is true that the stock market and bitcoin have a strong correlation, and they both react to certain economic factors. There are people who think if they invest in the stock market, they won't get their money back, and there are people with the same mindset towards bitcoin as well.

Missmanagement and corruption are the reasons behind this bankruptcy, and there are some internal bad actors as well.

It will likely just be a quick decline for BTC and then pump up again going to the bull market. I would like to believe FED will start distributing stimulus packages again but this time they are turning the cash into digital currencies and this is where we can see more users are going to buy BTC as well. BTC will rise above all this turmoil and the government may declare it a legal tender.

While BTC goes up in value, the USD also will drop its purchasing power. Meaning BTC may have $100K in price but the purchasing power may also be suppressed because of USD value.

[DVlog]

When I registered on the forum the general belief was that a crisis would favour bitcoin but if we see that in March 2020 it went down like all financial assets and that the inflation crisis and rate hikes by central banks have not been good for it either, I doubt that if we enter a crisis like the one in 2008 the price will react well.

What I am pretty sure of, however, is that if that happens the central banks will change their policy, print again as if there is no tomorrow and that will be good for the price of bitcoin, the post-crisis, where much of that printed money will flow into bitcoin.

I held the similar views about Bitcoin that its price will surge during the economic crisis, when I first ventured into the world of Bitcoin investment back in 2017. However, during the course of my journey, I learned that Bitcoin has very strong correlation with stock market and both markets are indeed influenced by CPI data or interest rate announcements. This correlation suggests that general public tends to sell various assets in their possession, including Bitcoins, during the period of economic crisis to fulfill their basic needs.

Regrading surge in bankruptcy filing, it is very disturbing development. I believe this issue will may find some solution when FED starts reducing the interest rates in an effort to stimulate economic growth.

Isn't it a common practice to sell assets during an economic crisis? It is true that the stock market and bitcoin have a strong correlation, and they both react to certain economic factors. There are people who think if they invest in the stock market, they won't get their money back, and there are people with the same mindset towards bitcoin as well.

Missmanagement and corruption are the reasons behind this bankruptcy, and there are some internal bad actors as well.

It will likely just be a quick decline for BTC and then pump up again going to the bull market. I would like to believe FED will start distributing stimulus packages again but this time they are turning the cash into digital currencies and this is where we can see more users are going to buy BTC as well. BTC will rise above all this turmoil and the government may declare it a legal tender.

While BTC goes up in value, the USD also will drop its purchasing power. Meaning BTC may have $100K in price but the purchasing power may also be suppressed because of USD value.

I do agree with you that the govt will try to use CBDC to distribute this type of package but I don't think they will declare BTC as a legal tender. I think it's the opposite that they will go for hard regulation or not-so-reasonable taxation.

The fall of PPP is constant and there is nothing we can do about it. The more new paper cash comes into circulation the more it will come down. This is another reason the rally of BTC looks so fast and dramatic.

[Mate2237]

Economic Meltdown affect businesses, human live, and corporations because at that economic downturn period, people are not doing business so everything is just stagnant. livelihood very costly. And this is what happened in the year 2020 because there was restriction of human movement across the world so businesses were stopped. And with that bitcoin was affect badly, and the price was down. It was after when the curfew was lifted in the world from the Covid 19 pandemic of 2020 that businesses returned to normalcy and bitcoin also bounced back in 2021.

World economic recession affect all sphere of the economic activities in the world. There is no two ways about it whenever there is crisis, bitcoin surge in the bad economy.