Looming U.S. Recession Could Drive Bitcoin Forward
JP Morgan claims that US has a 60 percent chance to face recession by 2020
Image source: pixabay - cegoh
An article on Bloomberg recently reported about the likelihood of US recession by End 2020:
"Two-thirds of business economists in the U.S. expect a recession to begin by the end of 2020"
Source: Bloomberg - Kearns
Trade policies will be major lead to the risk of recession, followed by higher interest rates. A poll conducted by the National Association for Business Economics reported that 56 percent of the forecasters see the contraction of the economy to occur in 2020, while 33 percent forecasted recession to occur 2021 or later.
"Respondents in NABE’s survey indicated they expect the Fed to raise interest rates once more this year and three times in 2019, consistent with projections from central bankers."
Source: Bloomberg - Kearns
Image source: pixabay - NikolayFrolochkin
Financial institution JP Morgan ran a prediction that also shows that the US market has a 60 percent chance of entering recession in the next two years. The relative magnitude of the next recession compared to the 2008 meltdown was not clarified.
JPMorgan’s model included indicators ranging from consumer and business sentiment to prime-age male labor participation, compensation growth, and durables and structures as a share of gross domestic product.
Source: EWN - Lavere
The recession would directly impact cryptocurrencies, as more banks are incorporating investments with cryptocurrencies. The impact will be much greater when Bitcoin ETFs are given the green light, and more institutional investors get involved.
Image source: pixabay - MichaelWuensch
Due to the divestment from the increasingly volatile traditional markets, Bitcoin and other cryptocurrencies could see a boost of hedge investors coming in. More and more large companies are currently creating or joining blockchain-related projects, including IBM, Volkswagen and PNC Bank.
Source: EWN - Lavere.
The backing receives from financial institutions is growing. Multinational bank and financial services company Morgan Stanley has released a report claiming that Bitcoin and the coin market constituted a “new institutional investment class” since 2017.
Source: EWN - Lavere.
It would not be surprising to see more investors flocking to cryptocurrencies. Naturally, Bitcoin would be their No. 1 choice. Do you agree?
more likely it is rather something like "controlled demolition" of USD and whole global financial system, in which USD plays certain central role.
most likely we are presently in kind of transitional period from old system to new, where will be no any cash fiat, but only kind of "crypto fiat" - as Petro in Venezuala already.
main thing is: hopefully all those banksters do not arrange actual "hot war", as apparently they are very eager to do.
I do believe crypto will benefit from a recession but it may not happen immediately. I'd look forward to it though.