What do you guys think will happen to the price of bitcoin (and altcoins for that matter) during a recession? Often when stocks went down a little crypto market would surge. But how will bitcoin behave in a full on world economic recession? Because history tells us that a recession is coming, we haven't had one in ten years, it might be 2018,2019, or even 2020 but it's coming. Do you think the traditional market and the cryptocurrency market are negatively or positively correlated? (Or are they correlated at all for that matter?)
Here is what will happen during recession to bitcoin prices:
1) Big companies will also have lack of funds as they will less number of prospects or work available. As a result, they will be forced to sell their assets to pay for the running expenses. If they have bitcoin funds, they will have to sell those.
2) A lot of people will loose jobs. Since these people will have no source of monthly income to pay for rent and food, they will have use the savings. Once bank deposits are spent, they will have to sell crypto holdings.
All this will increase the supply and reduce the demand of bitcoins.