As Bitcoin’s recent gains continue, investors are losing hope in the cryptocurrency market. For now, futures trading continues to be the most profitable way to make money in the crypto market.
Crypto experts have revealed that market turmoil is a consequence of multiple macroeconomic factors. The ongoing conflict between Russia and Ukraine as well inflation are two of these factors. In addition, governments’ expenses have also increased since the break of the Covid-19 up to now.
The Fed’s and the European Central Bank’s (ECB) interest rate increases are another notable aspect. For now though, crypto investors can only dream.
Charles Schwab’s Affect On Bitcoin Price
Bitcoin’s gains over the last few days were encouraging signs for a greener market. It dropped by 1.39% over the past 24 hours. Bitcoin currently trades at $19,215.63 at the time of writing.
Charles Schwab believes that this could be the start of a new dip in crypto markets due to the expected recession. Investors should be prepared for a bearish trend in crypto markets, warns Schwab.
The possibility of a recession
Charles Schwab’s Chief Global Investment Strategist, Jeffery Kleintop, revealedThere is a possibility that we will experience a predicted recession. He said that the global indicator of economic health has declined to an alarming level.
The OECD leading indicator, which is below 99 at the moment, was explained by him. This indicates a global recession. He also cited instances in the past when this index was below that territory.
His claims were that Covid-19 caused the worldwide economic depression in 2020. His examples date back as far as mid-1970, 1974, 1990, 1991, 2002, 2008, and later.
A leading indicator indicated significant changes in business activity as well as a shift within the wider economy. The current level of the OECD indicator shows that consumer confidence is lower than in past years. This includes the 2008 subprime mortgage crisis and 2020’s global pandemic.
Some organisations, such as the World Bank have forecast a recession for 2023. The Fed’s hawkish policies and the European Central Bank’s hawkish approach to economic policy are the causes of the recession.
BTC Performance during Recession
There’s no confirmation regarding the possible movement of Bitcoin during the expected recession. Quantitative easing could make it more attractive. However, this can only be achieved if there is a coordinated strategy by the Fed to deal with the slowing of the economy’s demand.
On the other hand, it’s also possible for BTC to dip even further due to the recession. Bitcoin isn’t the only stock market that is struggling during recessions.
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