Worst Is Yet To Come For Global Economy – Warns IMF, Will Bitcoin Price Hit New Lows
In the midst of increasing fear of recession, interest rate hikes and rising inflation rate, the crypto market has ended up on a bumpy ride since the start of 2022. Bitcoin, the world’s largest cryptocurrency by market cap, has now dropped at $19,000 level from the high of $44,600 hit on March 29 2022. Ethereum, the second largest cryptocurrency which was expected to surge after the merger, is hovering between $1,200 and $1,300 area.
On the other hand, the Crypto market has largely been following the footsteps of the stock market due to its correlation. The link between Bitcoin and stocks, especially tech stocks, has been increasing everyday. Hence, if the global economy gets pulled down due to recession, Bitcoin will see its downfall as investors will flock in to pull off their cash. For example, during the time of COVID-19 there was a recession in 2020 crypto market faced a sell off along with stock market.
Recession In 2023
Conversely, if the Federal Reserve decides to lower their interest rate hikes, Bitcoin might find its way up and fight against the possible recession days in the days to come. Meanwhile, if the Central Bank decides not to step in and the King currency falls due to recession, the crypto market will still have their way. This is because though Bitcoin faces a risk-off along with other assets, market participants will get back to Bitcoin.
Now, the International Monetary Fund (IMF) has issued a warning regarding the upcoming recession. As per IMF, the worst days are yet to come which means Bitcoin is about to plunge in the near future which is 2023. If 2023 witnesses recession as per IMF prediction, it’s a buy the dip opportunity for the one who is looking to enter the crypto world.Source