The Upcoming Recession (vs) Bitcoin 

How are they related?

Recession , this may probably  remind you of what happened on 2008,

1. It costed every American $70,000  
2. $13 trillion in wealth was lost  
3. 5.5 million jobs were lost  
4. 9 million lost homes 

 The greed of banks and government is pushing us right off the exact same cliff again.

An important Indicator which reflects an upcoming recession is the Negative Yielding Bonds.

Guess what,  The bonds yielding inverted a day before, Every time this had happened in the past, There was a recession in the next 12-24 months.

Apart from this, the currency markets are also facing a heavy crisis.

Every currency is losing it's value against the US dollar.

This doesn't mean that  the US dollar is improving it is just at a lower weakening phase.

1. The Venezuela currency had an inflation of over 1 million % 
2. The  Argentine peso  had a 33% drop this week.
3. Chinese Banks are going to have a run on from the Hong-Kong residents.
4. The Dow crashed by 800 points  yesterday

All these are indicators for a recession . 

Dow crashing and Negative yielding Bonds happened in 2007 i.e. 12 months before the 2008 Recession.

Does this means we will have recession in the next 12 months??

Well time has to answer that, but the probability of this happening is high.

BUT WHAT DOES THIS MEAN TO BITCOIN AND CRYPTO??

Bitcoin is said to be Digital Gold and it is also said to be a safe haven asset against the recession like Gold and Silver.

Yes! this is logical, but the truth is Bitcoin and all other cryptocurrencies  haven't faced a recession yet , so predicting how it will react to a global economic downturn is more or less impossible.

But the recent price action of the altcoins prove that , the recession would not be a favorable situation for the altcoin market.

While the case for Bitcoin may be bullish or bearish.
Safe-haven assets like gold and bonds have rallied in recent days. 

In 2008, the USD jumped nearly 20% against other currencies.  

But Bitcoin has not had any rallies in the recent past , it instead had a sell off .

But during the 2008 recession both Gold and Silver initially had a sell-off followed by the rally.

So this may be a similar phase for Bitcoin and also it is in need of some catalyst that can initiate such a rally.

Bakkt Futures may be one such catalyst. 

Bakkt is said to be launched on September 23 2019.

The Cryptocurrency market as a whole is not even comparable to the value of Amazon's stock value.

So the Cryptocurrency market is still very early, it doesn't have so much liquidity. So it doesn't take so much money inflow, to drive the price high.

While there are about 16 trillion negative yielding bond , Even if 5% of that (800 billion)enters the crypto market it can drive the price of Bitcoin so high. 

The current market cap of Bitcoin is just 185 Billion , So it is like 4.5 times the entire market cap of Bitcoin.

So what we need is just a small part of the money flow into Bitcoin.
So if Bitcoin is accepted as a safe haven asset then the recession is very Bullish for Bitcoin.

But the Opposite can also happen, The recession may also turn bearish for Bitcoin.

For Altcoins,

The fear in the market during the recession may resist the people from taking risks.

Potentially turning bearish for the altcoins.

The coming weeks and months will be crucial. 

Do we go higher as hopes for the global economy sink further?

That’s for time to tell. 

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