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

[South Park]

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.

If we take a look at what has happened when a government is in power and the economy begins to go out of control, what we will see is that they will begin to restrict the freedoms of their people, like only allowing to withdraw a small amount of money out of your savings account, ban the use of foreign currencies, confiscations, banning gold, price controls and many other similar measures, then it is clear to me that in that scenario bitcoin will be either banned or regulated as much as possible, and there is almost no chance at all that it would be declared to be legal tender.

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[DVlog]

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.

If we take a look at what has happened when a government is in power and the economy begins to go out of control, what we will see is that they will begin to restrict the freedoms of their people, like only allowing to withdraw a small amount of money out of your savings account, ban the use of foreign currencies, confiscations, banning gold, price controls and many other similar measures, then it is clear to me that in that scenario bitcoin will be either banned or regulated as much as possible, and there is almost no chance at all that it would be declared to be legal tender.

I won't say there isn't any chance that bitcoin will be declared a legal tender, but the chance is very low. USA officials tend to take an anti-crypto policy, but due to pressure, they declare bitcoin a commodity. I think the SEC will try hard regulation, and the government will impose high taxes to discourage people from using bitcoin. They will try to spread negativity about bitcoin to promote CBDC as better than bitcoin.

[Captain Corporate]

To be fair this could still be the ripple effect on what we had so far and I do not think that it will change anytime soon. I think its quite clear that we are going to end up with something that will matter more than people realizes, and that is why we should be trying to do something that will change a lot on the long term. I get that it may not be all that great, but we could still make it work with what we are going to get. Just because we have been through something hard, doesn't mean we should lay our weapons, just keep trying to get better and try to avoid all this situation. I am not personally doing great neither, but that doesn't mean that I will stop trying to do better.

[crwth]

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

I'm not sure that's why I said maybe lol. . I don't want to exchange my BTC TBH but I want to take advantage of the price IF it goes down or something.

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.

You do remember that in COVID, nothing survived right? Everything went down so much that nothing really survived and everybody cashed out. What would be the difference now if it continues with this economy?

[tabas]

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.

The concern is valid and we're seeing the domino effect of it through many layoffs from various companies, and note, these are the huge companies that employes thousands of employees.

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?

While we can say that the BTC market is inversely proportional. There are times that it is directly proportional from it. The point here is that, we'll never know that but if we'll look at the basics of Bitcoin, we can be of the same opinion that it's also getting some touch of the global markets and whatever happens to it and then will eventually locks out from the tie it's getting from it.

[Jatiluhung]

At least I personally have started withdrawing the funds I have in shares. I withdrew it because there was also a fairly large withdrawal last week. Even the Stock Marketcap in the US lost around 1 trillion dollars last week. So we should be able to see the big picture of where the withdrawn funds are going. And one of them is expected to also include Bitcoin.

Maybe Bitcoin could experience a final downturn before a true bullish halving occurs. But usually before a big decline, prices tend to increase first. Maybe this is just my speculation. And yeah, let's just call it bullshit because it is bullshit. But I feel that at the end of this year and at the beginning of this year there will be a little bullish phase for bitcoin. Because I believe that funds withdrawn from the stock market will probably not go into Gold very much. The development of the times and shifts in thinking may cause more funds to enter Bitcoin. Because indirectly we can see that many people consider Bitcoin to be a fairly safe asset storage. If it's a store of value then Gold is superior. But if storage is secure then Bitcoin I think is safer. But I don't know, nowadays sometimes the games on the market are much wilder than in previous years. Not only in crypto but also in stocks.

[lombok]

I won't say there isn't any chance that bitcoin will be declared a legal tender, but the chance is very low. USA officials tend to take an anti-crypto policy, but due to pressure, they declare bitcoin a commodity. I think the SEC will try hard regulation, and the government will impose high taxes to discourage people from using bitcoin. They will try to spread negativity about bitcoin to promote CBDC as better than bitcoin.

This scheme is only to digitize USD or currency under the pretext of cryptography that BTC has been raising so far. For people who know very well about crypto, they will think twice about CBDC later. Because CBDC is not the intention or purpose of establishing blockchain and Bitcoin, CBDC is purely a ploy for the government or authorities to continue to monopolize the digital USD.

You do remember that in COVID, nothing survived right? Everything went down so much that nothing really survived and everybody cashed out. What would be the difference now if it continues with this economy?

And I almost forgot that this crisis is also exacerbated by increasing tensions between Russia and Nato. Which causes increases in oil and food prices. If it continues, I am sure from the graph above that it will still be able to rise.


Hopefully this incident will end soon and return to normal. There is already too much FUD floating around, things are not always bad and not always good because the wheels will continue to turn and turn.

[Husires]

I am not sure of the sources on which @WhaleWire based its report, but let us not forget that we are in the year preceding the election year, and all the news needs to read it several times, and I remember that every year such reports come that say that what is coming is worse and that we will face a crisis like what happened in the year 2008.
What happened in 2008 will not be repeated easily or in a way that everyone will be able to know, but data from some official links is up for discussion.


https://www.uscourts.gov/statistics-reports/analysis-reports/bankruptcy-filings-statistics

  Bankruptcy filings are reported quarterly for each 12-month period ending March 31, June 30, September 30, and December 31. The following tables are available:

     Business and non-business bankruptcy filings (Table F-2, 12-month);
     Bankruptcy data for the 12-month periods (Table F);

Refer to the official data link above and you will find that the report is misleading.

[blue Snow]

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?

The Bitcoin price movements are sometimes the same as the shares and stock, but not always. Several years ago, the Bitcoin price turned around and created a candle opposite with stock. But sometimes both create the same direction. With the condition, we don't have to panic and fear about the situation, as we know even the 2020 condition is bad, but the bitcoin price creates a new ATH after that. If this year has the same situation, we just be patient and hold it after going back like 2021.

[Sayeds56]

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.

Selling assets during an economic crisis can be common practice, but it largely depends on an individual's financial situation, risk tolerance and investment goals. Bitcoin and stocks are two different asset classes and may react differently to economic crisis. How Bitcoin reacts to sever economic crisis, remains uncertain, as since its introduction in 2009, it has not experienced a serious economic meltdown.

It is true that mismanagement, corruption and internal bad actors can be behind bankruptcy of any company, these issues often come to the forefront when interest rates are higher and broader economic environment is unfavorable.

[woez]

When trading Bitcoin, there is still a certain level of awareness among the masses that is required So in my opinion Keep Buying and Selling at the right price to Make Profits. I personally don't really care about issues like that which only contribute to making us more confused and creating our own fears.

[DVlog]

I won't say there isn't any chance that bitcoin will be declared a legal tender, but the chance is very low. USA officials tend to take an anti-crypto policy, but due to pressure, they declare bitcoin a commodity. I think the SEC will try hard regulation, and the government will impose high taxes to discourage people from using bitcoin. They will try to spread negativity about bitcoin to promote CBDC as better than bitcoin.

This scheme is only to digitize USD or currency under the pretext of cryptography that BTC has been raising so far. For people who know very well about crypto, they will think twice about CBDC later. Because CBDC is not the intention or purpose of establishing blockchain and Bitcoin, CBDC is purely a ploy for the government or authorities to continue to monopolize the digital USD.

I don't think it's about an established monopoly on USD because it already has that one. USD-pegged stable currencies and fiat currencies are widely adopted in crypto and the real world. CBDC will give people more control. If someone is financially dependent on you, you can force him to do anything for you. This will give the government more control over their people because they will be financially helpless.

[DrBeer]

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 will also suffer in the event of such a situation. The problem is that 99.9% of cryptocurrency, today, has no real useful value, except for that formed by the speculative market. And in case of global problems, who needs a low-liquidity, worthless asset in the real world? Gold, food, other demanded goods and assets will be in price

[lombok]

I am not sure of the sources on which @WhaleWire based its report, but let us not forget that we are in the year preceding the election year, and all the news needs to read it several times, and I remember that every year such reports come that say that what is coming is worse and that we will face a crisis like what happened in the year 2008.
What happened in 2008 will not be repeated easily or in a way that everyone will be able to know, but data from some official links is up for discussion.


https://www.uscourts.gov/statistics-reports/analysis-reports/bankruptcy-filings-statistics

  Bankruptcy filings are reported quarterly for each 12-month period ending March 31, June 30, September 30, and December 31. The following tables are available:

     Business and non-business bankruptcy filings (Table F-2, 12-month);
     Bankruptcy data for the 12-month periods (Table F);

Refer to the official data link above and you will find that the report is misleading.

Thank you for the correction and advice to find detailed and accurate data regarding this problem. There is a distortion of data with a certain purpose after we compare one data with another, this is a kind of FUD in my opinion what is being spread by @Whalewire. Of course, with due diligence and further research, we all know that the economic situation is still above control.

Thank you for the source link which will be useful for me and other members for research materials or market observations.

[Sayeds56]

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.

You are correct that Bitcoin may fall to $20,000 or even lower before it enters into bullish phase, and this forecast is also shared in analysis of many prominent crypto analysts. A lot of noise revolving around ETF approval may keep the Bitcoin price extremely volatile during the period before ETF of prominent institutions like Blackrock is finally approved, expected in first quarter in 2024.

Moreover, it is also possible that many traditional banks including entities like HSBC are likely to allow investment and trading in Bitcoin and other cryptocurrencies, that can help them to grow their business and stay competitive in the market.

[lombok]

You are correct that Bitcoin may fall to $20,000 or even lower before it enters into bullish phase, and this forecast is also shared in analysis of many prominent crypto analysts. A lot of noise revolving around ETF approval may keep the Bitcoin price extremely volatile during the period before ETF of prominent institutions like Blackrock is finally approved, expected in first quarter in 2024.

Moreover, it is also possible that many traditional banks including entities like HSBC are likely to allow investment and trading in Bitcoin and other cryptocurrencies, that can help them to grow their business and stay competitive in the market.

Regarding ETFs, this is still vague in my opinion. The SEC is still keeping its distance regarding Crypto/Bitcoin so whether or not an ETF from Blackrock or anywhere else will be accepted is still unclear. The protective nature of the SEC is very clear and maybe this is good for Bitcoin in the future too.

Many factors can influence BTC volatility apart from ETFs, economic data releases, Powell's speech or bad news can also make BTC very volatile.

[Taskford]

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 will also suffer in the event of such a situation. The problem is that 99.9% of cryptocurrency, today, has no real useful value, except for that formed by the speculative market. And in case of global problems, who needs a low-liquidity, worthless asset in the real world? Gold, food, other demanded goods and assets will be in price

With that events many would think to liquidate there assets and put it on more safer place. I don't know why there are other people think that if there's a economic crisis it can give huge advantage to crypto users. Maybe they think about short term since those fiat investors might go on crypto to find good opportunities but in long run they will not stay and decide to maybe buy gold since this is more safer investment they could take. For us crypto users maybe we will not get affected much on those crisis since even if they are experiencing negatives on that situation.

We can still earn since crypto market is volatile and anyone can do good trades or even continue to offer our service to the clients who's working something in crypto industry.

[Sayeds56]

Many factors can influence BTC volatility apart from ETFs, economic data releases, Powell's speech or bad news can also make BTC very volatile.

Certainly, there are various factors beside ETFs those can influence the Bitcoin price, in particular interest rate fluctuations and updates on regulatory developments. Today, Bitcoin is persistently making effort to breach  $27,000, and if it succeeds surpassing this significant resistance, there is a chance ,we could see a minor rally in coming weeks, with the potential for Bitcoin to approach $30,000 mark, which is an important psychological barrier.

And I almost forgot that this crisis is also exacerbated by increasing tensions between Russia and Nato. Which causes increases in oil and food prices. If it continues, I am sure from the graph above that it will still be able to rise.
Hopefully this incident will end soon and return to normal. There is already too much FUD floating around, things are not always bad and not always good because the wheels will continue to turn and turn.

You are absolutely correct that Ukraine-Russia war is one of root causes of ongoing economic crisis that has caused rise in inflation due to rising fuel & food prices across the globe. We must raise our voices though all available platform of social media to compel world leaders to bring this conflict to an end through meaningful negotiations.

[lombok]

Certainly, there are various factors beside ETFs those can influence the Bitcoin price, in particular interest rate fluctuations and updates on regulatory developments. Today, Bitcoin is persistently making effort to breach  $27,000, and if it succeeds surpassing this significant resistance, there is a chance ,we could see a minor rally in coming weeks, with the potential for Bitcoin to approach $30,000 mark, which is an important psychological barrier.

Recently Bitcoin was perched at $27,000 and is still consolidating in that area. I hope there will be a little positive movement over the next few weeks.

You are absolutely correct that Ukraine-Russia war is one of root causes of ongoing economic crisis that has caused rise in inflation due to rising fuel & food prices across the globe. We must raise our voices though all available platform of social media to compel world leaders to bring this conflict to an end through meaningful negotiations.

The Nato camp and the Russian camp are equally strong. They each have strong egos to enter and monopolize the economy, of course. Any peaceful steps and attempts at a ceasefire will be a bit tough. Apart from that, Russia and several coalitions are also raising BRICS which will shake the USD in the future. I see the potential for Bitcoin/Crypto here as an alternative in the future and of course there is a big possibility for America to utilize crypto to save its dominance. We just noticed that many large American companies/institutions are stockpiling BTC, there are good rumors about ETFs in the region.

[Darker45]

While Bitcoin's correlation with the traditional financial market rises and falls, it has more or less been established that influential macroeconomic trends can certainly affect Bitcoin. Bitcoin isn't anymore the isolated independent island that it may have been perceived. Although there's still a considerably amount of fluidity or unpredictability in Bitcoin's relationship with the traditional financial market, I don't think it won't be affected by such a huge economic crisis as a market crash in no less than the US. And considering how institutions are already part of the game, there will certainly be a significant sell off.