Can Crypto Markets Survive a Massive US Recession?

[ad_1]

A potential US recession in the second half of 2023 is looming in the crypto market, according to renowned crypto expert Michael van de Poppe. In a tweet, he highlighted the Federal Reserve’s (Fed) readiness for a mild recession, saying that’s an understatement.

Van de Poppe pointed out that despite the Fed’s suggestion of a mild recession, the economy will experience a much deeper recession due to the shocks from the rapid increases. He also predicted that Bitcoin price could reach $40,000 to around $50,000 and then face a correction.

The Fed’s banking crisis could push the United States into recession

According to Federal Reserve documents, the current banking crisis in the United States is expected to push the economy into recession later this year. While Vice President for Oversight Michael Barr said the banking sector is strong and resilient, various economists expect the economy to take a hit.

Related: Banking Crisis Looms: Is Crypto the Future of Secure Investing? Coinpedia Fintech News

Experts expected a mild recession to begin later this year, with a recovery over the next two years. However, projections after the meeting indicated that Fed officials expect GDP growth of just 0.4% for all of 2023.

Crypto Markets on a Bull Run

News of the recession prediction came at a time when the crypto market was in turmoil, with Bitcoin crushing resistance at $30,000 and hitting a 10-month high. The Fed’s interest rate hike announcement caused the Bitcoin price to rise 7% on Wednesday.

However, rising interest rates could put pressure on the flow of cash that is driving up the price of Bitcoin, as well as other investment assets.

Technical analysis shows that Bitcoin is facing substantial resistance near the $30,580 threshold, and a drop in the close of the candles below this point could start a downtrend towards $29,500. Bitcoin was worth $30,263 at press time.

Do you think Bitcoin can weather the storm of a predicted recession?

[ad_2]