Here’s What Crypto Community Thinks ‘Technical’ Recession Could Mean
Amid much anticipation, the release of U.S. GDP figures resulted in speculation of an undercurrent recession situation. For a second consecutive quarter, the GDP recorded negative growth, leading to talk of a potential recession. Thursday’s data makes one wonder if there could be a crypto recession or a crypto winter in future. The cryptocurrency markets suffered massive setbacks in the last few months, with assets dropping over 70%.
Recession Could Result In More Losses To Small Crypto Retailers?
The crypto market downturn in recent times led to a blanket loss for all investors, of all kinds. However, it was the small investors who suffered more losses by selling at losses in panic. With the possibility of a recession, the same situation could be repeated as lesser revenues could mean people selling at low prices and buying at high prices. Also, the crypto community thinks there might not be any more crashes as people are used to crypto winter already.
Meanwhile, Crypto Rover, an influencer, thinks Bitcoin could be the biggest beneficiary of the recession. “I still believe Bitcoin will recover the strongest after this recession.” Overall, several old timers in the crypto space have been suggesting that crypto could be bullish in this scenario. XRP Queen, a crypto enthusiast, said the recession signals this is the time to buy XRP.
“United States is officially in a recession following two consecutive quarters of negative GDP growth. Time to buy XRP.”
Crypto Market Largely Unhinged By Macro Announcements
The cryptocurrency market reacted positively on Wednesday to the Fed interest rate hike. With an hour after the announcement, Bitcoin rose by around 4% while most crypto assets performed similarly. Thursday’s GDP data release resulted in a slight dip in cryptocurrencies, with Bitcoin dropping 0.92% in an hour. As of writing, Bitcoin (BTC) is trading at $22,890, up 6.78% in the last 24 hours, according to CoinMarketCap.
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