What Happens to Bitcoin and Altcoins in a Recession? Research Team Weighs In
CryptoNewsTerminal Staff08 Aug, 2024
What Happens to Bitcoin and Altcoins in a Recession? Research Team Weighs In
Analysis: According to The Block, Bitfinex's research team predicted that "if a recession materializes, BTC could benefit as a safe haven, while altcoins could struggle due to risk aversion." They added, "In the event of a recession, Bitcoin is likely to be classified as a safe haven. When economic uncertainty increases, investors flock to asset classes that are classified as stores of value. Demand could increase for Bitcoin, which is known as digital gold. On the other hand, demand is expected to be low for altcoins due to reduced liquidity and risk aversion. In particular, even the funds previously invested in altcoins could shift to safe havens."
