The crypto market has seen an upward and downward movement since the weekend, Bitcoin lost more than $500 from its price on April 10, as last week ended a strong bullish end and then started a bearish cycle but reversed its trend with a slow rise.
The world's largest cryptocurrency initially traded at $7,300 last Friday, then suddenly fell near the $6,500 level, but struggled to recover within hours to $6,700 and then slowly continued to rise to the current $6,900 range.
Bitcoin in the past 7 days has lost towards 5%, though some analysts are still XM Arabia They expect the currency to hit $20,000 by the end of this year. The currency may have fallen at the same time as the stock markets fell in mid-March, but its correlation with riskier assets is weaker than many think.
The cryptocurrency market continues to recover after collapsing nearly a month ago, with the total market value of currencies traded exceeding $200 billion, the highest level since mid-March. It is clear that investing in the crypto industry offers more profit potential than trading stocks and regular currencies based on the recent bitcoin prices.
The global economy took a heavy blow in the wake of the Corona virus pandemic, and the World Trade Organization expects that the global economic slowdown caused by the virus will outlast the 2008 crisis, as closures around the world caused a decrease in trade and passenger traffic, as well as weak business activity in most countries, As a result, the world GDP is expected to decline by about 5%.
Bitcoin and the Economic Recession
The stagnation of economic activity and rapid growth in unemployment is sure to be followed by a sharp increase in inflation which will lead to a sharp rise in the prices of goods and products. Inflation will smoothly spread across the entire global economy in a month or two, which will force market participants to search for non-financial assets Exposed to inflation risks, Bitcoin is one of the best assets that has good protection against devaluation due to its inflation-free nature.
The upcoming halving event will provide additional support for Bitcoin, there are 35 days left to the third halving which occurs once every four years, as the Bitcoin supply halves, historically this event has been positive for cryptocurrency prices and crypto enthusiasts have high hopes for the halving event that will support prices Bitcoin is strong, but Bitcoin Cash and Litecoin’s experience with the halving has shown that it can go in an unexpected way, and even if there is a short-term negative impact, that doesn’t mean we won’t see new highs in the next few years.
On the other hand, analysts believe that Bitcoin has not experienced such current global economic turmoil, it was established in 2008 with the global financial crisis, and now it must deal with its first ever global economic recession, so the future is still open to speculation and uncertainty .