Over the previous few days, the Bitcoin price has hardly budged from its $19,000 level, mostly maintaining a narrow range. On October 12, BTC barely made any moves and soared about 0.25% in the 24 hours.
Concern about a recession among investors is comparable to that voiced in 2020 when 75% of respondents expressed concern about a downturn at the height of the epidemic.
Even in the middle of a severe economic slump, a well-thought-out plan can considerably improve one’s capacity to make sensible financial decisions.
Advisor Authority Poll Signals Recession Fear
According to Nationwide’s annual Advisor Authority poll, released on Monday, investors and advisers are worried by the present macroeconomic situation. As a result, their optimism has plummeted considerably.
Investor confidence in the 12 months has dropped from 49% a year ago to 39%. Equally dismal, financial advisors’ and experts’ optimism is 48%, down 15% from 2021. While 54% of investors anticipate greater volatility in the next 12 months, their fear of a recession is 20% higher.
It’s frightening to see that 75% of investors are worried about a recession, just like they were in 2020 at the height of the epidemic. Advisors and financial experts are even more anxious, with 82% expecting a recession in 2022, up from 77% in 2020.
Hence, investors are shifting away from Crypto and stocks and toward safe-haven assets due to the fear of a recession.
IMF Downgrades Economic Projections
On Tuesday, the IMF lowered its projections for global economic growth in 2023, citing Russia’s protracted war with Ukraine, widespread inflationary pressures, and increased interest rates that increase borrowing rates for businesses and consumers as reasons.
The international financing agency for 190 countries has reduced its growth forecast for the world for 2019 to 2.7% from 2.9% in July.
The International Monetary Fund (IMF) has not revised its growth forecast for 2022, which remains at a modest 3.2% but is still less than half of the 6% growth seen in 2018.
According to IMF’s chief economist Pierre-Olivier Gourinchas,
More than a third of the global economy will contract this year or next, while the three largest economies — the United States, the European Union, and China — will continue to stall,”
According to the IMF’s forecast, more than a third of the world’s economy will experience two consecutive quarters of negative growth in the coming year. The United States and China, the world’s two largest economies, are both experiencing sluggish growth, and major European economies are also encountering economic headwinds. The US and its Western allies have slapped crippling sanctions on Russia due to Russia’s eight-month war in Ukraine.
The International Monetary Fund has lowered its growth forecast for the US economy this year from 2.3% to 1.6% due to economic uncertainties and significant consumer price rises. As for the United States, the IMF predicts a meager 1% expansion for 2019.
The International Monetary Fund projects a global rise in consumer prices of 8.8 percent in 2019, up from 4.7 percent in 2021.
Is volatility on the way? Inflows into Bitcoin Exchanges Skyrocket
Since “whales” have apparently transferred a large quantity of Bitcoin to spot exchanges, this situation could soon shift. CryptoQuant, a well-known analytics platform for cryptocurrencies, reports a dramatic increase in deposits to spot markets.
The majority of these transactions come from “whale” addresses that own hundreds to thousands of Bitcoins and have been sending them to cryptocurrency exchanges.
A comment from a CryptoQuant analyst reads as follows:
It seems that whales want lower prices for Bitcoin. Transferring from wallets that have from 100 to 1000 Bitcoin in large quantities to the spot exchanges a while ago, the price could press down more and it could be a distribution to different wallets.
But on the downside, I expect the negative scenario and take caution.
Bitcoin Price Prediction – Can BTC Reach $100,000 After Bear Market?
According to Bloomberg Intelligence’s senior commodity strategist Mike McGlone, Bitcoin price prediction is bullish and it will reach $100,000 by 2025, and the cryptocurrency market will thrive as a “revived bull market.”
In his opinion, Bitcoin’s dramatic reversal is just getting started, McGlone argues. This bear market reflects the highest inflation rate in four decades.
On Wednesday, the current Bitcoin price is $19,145.43, and the 24-hour trading volume is $27.28 billion. CoinMarketCap currently ranks first, with a live market cap of $367 billion.
Technically, Bitcoin, the leading cryptocurrency, trades sideways in a narrow trading range of $25,666 to $18,630. On the weekly timeframe, Bitcoin has repeatedly tested the triple bottom support of $18,650 but has yet to break below it. Bitcoin has formed a Doji on the weekly timeframe, and spinning top candles are supporting investors’ indecision.
Given the stronger-than-expected economic events in the United States, the Fed may raise interest rates in the coming months. With a rate hike, we may see further declines in Bitcoin demand, eventually breaking below the triple-bottom support level of $18,630 and pushing BTC toward $12,835.
Conversely, dovish Fed policy, and once the economy is out of recession, BTC may show some recovery.
In this case, increased BTC demand could push the price up to a major resistance level of $25,666. Above this, the previously broken upward trendline may provide additional resistance near $32,330. Having said that, Bitcoin has the potential to reach $100,000, but this is unlikely to happen anytime soon.
Alternative Cryptos – IMPT
With more than $3.6 million raised since October 03, the ongoing Impact Project (IMPT) token presale has gotten a lot of attention.
The Impact Project is an Ethereum-based carbon credit marketplace, making it a potentially profitable investment opportunity for ESG investors or anyone looking for the massive price increases that can accompany a new coin’s initial listing. In addition, the Impact Project will provide users with tokenized NFT carbon credits as an incentive (for purchasing from green retailers).
According to the IMPT white paper, this addresses a number of issues that are currently plaguing the carbon credit market. These include selling credits twice, overcalculating credits, and failing to retire credits properly.