Recession and crypto – Here’s why the price of Bitcoin will go up according to this management company

As rumors of a pullback swirl in the wake of the latest US economic growth numbers, digital asset management firm CoinShares revealed a bullish prognosis for Bitcoin in a tweet on Friday:

“Are you worried about how the cryptocurrency industry will value? When it comes to knowing how to comment on the Bitcoin could present itself in the event of a recoil, our research team shares their opinion, and it is not as terrible as you might imagine. »

CoinShares reports on a blog post in which it is claimed that the rising dollar, which has made Bitcoin particularly susceptible to rate hikes, is primarily responsible for the recent decline in the price.

CoinShares maintained that the United States and the rest of the world are experiencing a regression, which prompts the Fed to begin to ease its measures, due to the combination of Fed rate hikes and the deterioration of the situation in the financial sector. the energy generated by the crisis in Ukraine.

Therefore, CoinShares believes that a weaker dovish Fed and dollar will be supportive for Bitcoin, which is a rapidly expanding store of value and growth asset. According to CoinShares, this will likely bring an end to Bitcoin’s erratic movements and lead to the end of its correlation with tech stocks.

United States: backward or not?

🔥 HOT – The #USA is definitely entering a decline after two consecutive quarters of negative GDP growth. The last time this happened was in 2020 in the midst of the COVID crisis. https://t.co/RfMP9Fv07f

It is important to note that the American economy has shown signs of weakening even if the Fed refuses to announce that the first economic power is in retreat due to the good unemployment figures. It was revealed last week that the US economy has shrunk for the second consecutive quarter, one of the signs that a nation is experiencing a setback.

Read also Cryptocurrency crash: Will crypto continue to fall in price, and what to do if the market crashes?

The Fed raised rates yet again last week by 75 basis points. The rate hike seems to have been priced in by the market, and cryptocurrencies reacted positively.

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