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The crypto market gives investors no hope of recovery as Bitcoin price bounces back from recent gains. In the meantime, futures trading remains the best way to take advantage of the crypto ecosystem.
Experts in the crypto world have revealed that the current market situation is the result of several macroeconomic factors. These factors include the ongoing war between Ukraine and Russia and inflation. In addition, government spending has also increased since the outbreak of Covid-19 so far.
Another notable factor is the interest rate hikes by the Fed and the European Central Bank (ECB). Unfortunately, for now, only the imagination can capture the mind for most crypto investors.
Charles Schwab’s Influence on Bitcoin Price
Bitcoin has seen some gains in recent days, which seemed like a good sign for a green market. But in the past 24 hours, it fell again by 1.39%. Bitcoin is currently trading at $19,215.63 at the time of writing.
According to Charles Schwab, this could be the start of another dip in the crypto market due to the expected recession. As a result, he is warning investors to prepare for another bearish move in the crypto market.
Possibility of the recession
Jeffery Kleintop, Chief Global Investment Strategist of Charles Schwab, revealed the possibility of the predicted recession. He stated that a key global economic indicator has fallen to a critical level.
He explained that the OECD’s leading indicator is currently in dangerous territory, below 99. This is a clear indication of a global recession. He pointed to some previous instances where the index fell below this area.
According to him, the global economic recession that occurred in 2020 was a result of Covid-19. His cases date back as far as the mid-1970s and 1974, late 1981 and 1990, and early 2002 and 2008.
The leading indicator revealed significant volatile business activity and a shift in the broader economy. The current level of the OECD indicator also shows that the consumer confidence index is worse than some past events. These include the subprime mortgage crisis in 2008 and the global pandemic in 2020.
Some organizations, such as the World Bank, have also forecast a recession in 2023, stating that the expected recession is due to the aggressive policies of the European Central Bank and the Fed.
BTC Performance During Recession
There is no confirmation on Bitcoin’s possible movement during the expected recession. However, there is a good chance that it will rise as a result of quantitative easing. But this is only possible if the Fed works out a strategy to address the demand slowdown.
On the other hand, it is also possible that BTC will fall even further due to the recession. The main reason is that stock markets are barely doing well during the recession, and Bitcoin is no exception.
Featured Image From Pixabay, Charts From Tradingview