A global recession should lead to the next rally for bitcoin, according to Bloomberg. In a report, analysts assess the consequences of a global recession on Bitcoin and the crypto market in 2023.
The poor performance of Bitcoin and the cryptocurrency market caused by the turmoil of 2022 was not able to dampen the promising vision among the major players in the digital asset market in the coming year.
- Do you have any questions? BeInCrypto has a glossary that can help answer your questions about the world of crypto!
- Do you want to stay updated with everything related to the crypto world? BeInCrypto has a Telegram community where you can read relevant news live and chat with other cryptocurrency enthusiasts. paying off!
- You can also join our communities at TwitterAnd Instagram and Facebook.
Bloomberg is among the platforms taking an optimistic view and forecasting a growth scenario for Bitcoin in 2023.
Recession may change direction
In the report, analysts assess the impact of the global recession’s impact on Bitcoin and the broader crypto market.
For them, the growing potential for a “severe global economic recession” could become one of the main “catalysts for a new boom” for the cryptocurrency market in 2023:
“Our bias is that bitcoin is likely to come out on top in most scenarios,” Bloomberg explains.
Bloomberg reports are a standard in financial and cryptocurrency market analysis, and are often relevant to many prominent traders and investors in the market.
Founder of Altana Cryptocurrency Fund, Alistair Milne, one of those characters. He predicted that Bitcoin would be valued at $45,000 given inflation rates favoring the asset.
The report states that the inverted yield curve indicates that long-term interest rates are lower than short-term interest rates, as a potential indicator, and adds that economic growth will decline, which will have repercussions for all assets.
This means that Bitcoin could drop to $12,000 or more to $10,000. A decrease of $4,490 or $6,940 from the price currently trading around $17,353. However, even if more declines occur in the face of a recession, the asset will have an upward return, according to the report.
The Fed’s Macroeconomic Pivot
Another scenario presented involves the participation of the Federal Reserve and central banks, and the report notes that, unlike last year, these entities may have to “modify the deflationary forces of declining asset prices,” and thus resume the rally for all markets.
Analysts say that in the event of a policy change by the Fed and central banks, the scenario will be equally positive for Bitcoin. In this pivotal scenario for the Fed, they believe bitcoin will transition into a “digital version of gold” that works similarly to metal and long US Treasury bonds.
Bloomberg concluded, “A quick recovery from the decline in GDP and asset prices appears less likely.”
Disclaimer
All information on our website is published in good faith and for general information purposes only. Any action you take based on the information on our website is at your own risk.