27 September 2022 | Macroeconomics

What will happen to Bitcoin and Ether if the traditional markets "break down"?

Numerous economic indicators suggest that the U.S. and global economies will soon face a severe recession. Let's take a look at what that might mean for crypto investors.

No one seems to be sure right now whether markets will bounce back before heading into a further recession. Now might be a good time to consider investing in cryptocurrencies.

The U.S. dollar index is now at its highest level in two decades, outperforming the world's other major currencies. From this we can conclude that investors are trying to ensure the stability of their savings with cash by exiting stock markets, foreign currencies and corporate debt.

It is hard to predict how a possible housing market collapse or another 20 percent stock market crash could affect bitcoin and ether. On the one hand, there is pressure from holders looking to reduce their risks and secure cash positions in the event of a longer-than-expected crypto winter. On the other hand, there may be an influx of investors looking for non-confiscatory assets or seeking protection against inflation.

Anna Borisova MarketCheese
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