{"id":383835,"date":"2019-05-27T13:34:51","date_gmt":"2019-05-27T13:34:51","guid":{"rendered":"https:\/\/uniquehot.com\/?p=383835"},"modified":"2020-10-07T11:27:16","modified_gmt":"2020-10-07T11:27:16","slug":"is-the-declining-global-economy-growth-fueling-the-stunning-rally-of-bitcoin","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/is-the-declining-global-economy-growth-fueling-the-stunning-rally-of-bitcoin\/","title":{"rendered":"Is the Declining Global Economy Growth Fueling the Stunning Rally of Bitcoin?"},"content":{"rendered":"
In a continuation of form, Bitcoin has managed to break key resistance levels at $8,500 and $8,800<\/a>. And with each passing day, signs the crypto market is entering a new bullish phase become increasingly compelling. But, at the same time, talk of an incoming recession is getting louder and louder. That being so, some are wondering whether Bitcoin and cryptocurrency will have an opportunity to usurp legacy systems.<\/p>\n Key economic indicators point to a slowdown in the US economy. For example, US car sales fell 6.1%<\/a> in April to 16.4 million units, the lowest level since October 2014. Economist and financial writer, David Rosenberg<\/a>, noted that this is the weakest year on year trend since 2011.<\/p>\n <\/p>\n Not only that, US mortgage applications had seen the steepest weekly fall<\/a> since December last year. Figures released from the Mortgage Bankers Association show applications to lenders fell by 7.3% in April, the most significant drop since 21st December 2018, which saw a 9.9% decrease.<\/p>\n And with two-thirds of economists<\/a> predict a recession before the end of 2020, the outlook is bleak. Speaking to Business Insider<\/a> in 2017, financial commentator, Jim Rogers spoke about the next recession:<\/p>\n “It’s going to be the biggest in my lifetime, and I’m older than you. No, it’s going to be serious stuff. We’ve had financial problems in America \u2014 let’s use America \u2014 every four to seven years, since the beginning of the republic. Well, it’s been over eight since the last one. This is the longest or second-longest in recorded history, so it’s coming. And the next time it comes \u2014 you know, in 2008, we had a problem because of debt. [Henry,] the debt now, that debt is nothing compared to what’s happening now…It’s going to be the worst in your lifetime \u2014 my lifetime too. Be worried.”<\/p><\/blockquote>\n People say Bitcoin was born as a result of Satoshi Nakamoto’s dissatisfaction with the economic system.\u00a0 He envisioned a future where individuals could transact peer-to-peer, without the involvement of an intermediary. This, he hoped, would democratize finance and re-distribute wealth back to people. As such, Nakamoto’s concept of Bitcoin intended to replace legacy systems.<\/p>\n All the same, we have not been in this position before, and no-one knows how cryptocurrency will respond in the event of a global recession. However, as a risky and volatile investment, Bitcoin could fare badly. In times of slowdown, people seek safe places to put their money. It’s possible a recession would decimate the cryptocurrency markets, as investors turn to “safer” bets in bonds, and familiarity in precious metals.<\/p>\n https:\/\/twitter.com\/mykingbrian\/status\/9384322<\/p>\nUS Economic Indicators Look Bleak<\/h3>\n
What Will Happen To Bitcoin In A Recession?<\/h3>\n