How a Global Recession Can Boost the Crypto Market?

Crypto to fiat exchange

Cryptocurrency is the biggest innovation of the 21st century which has the potential to transform the existing financial sector. Cryptocurrencies are considered as the best alternative to traditional currency, giving users more option and freedom over fiat currencies. It was 2017 crypto bull run which changed the whole course of cryptocurrencies, now a global recession can cement its position as the viable alternative to traditional currencies. According to a recent study, a global economic crisis is very near and this means good news from the crypto market. Worries of the next global recession are already doing rounds in popular journals and news portals. If this proves true, crypto to fiat exchange platform will benefit the most.

IMF predicting a market slowdown

According to IMF, there are numerous indicators which are pointing towards an economic downturn. In a recently published report the International Monetary Fund warned of several points which are early signs of global economic crisis. Since 1990 China is growing at the lowest rate and no-deal Brexit are two of the main reasons cited in the report. Add to it the threat of US-China trade war which will only worsen the situation.

The International Monetary Fund has shared the recent market sentiment and is mentioned the worrying signs for the global economy. Trade tensions are escalating every day, several emerging markets are creating worries, Italian fiscal policy concerns and numerous other factors are playing as a catalyst for a deteriorating global economy. In days to come the range of other events can spark of a broader deterioration in market sentiments, leading more debt burdens. Recent statistics published showed China’s growth rate slowed down to around 6.6 percent, which is the slowest since 1990.

Is this a good sign for the crypto market?

Cryptocurrency has always been considered as a viable option to the existing financial system, the economic slowdown will open gates for the crypto market. Economists believe that market slowdown will push cryptocurrencyas the best alternative to Dollar. If recent economic decline persists for some more time, it could mean the next crypto Bull Run is around the corner. Every time the traditional market gets hit, the crypto market sees an upward trend. Depending on when the global economic meltdown happens and what are its causes, crypto market can experience various effects. Global recession can lead to all unstable digital currencies falling hard and surge for stable crypto coins. However, experts warn that crypto market boom may depend on the actual reason behind the global recession. In general, cryptocurrencies would be pushed higher as a viable alternative to fiat currency.

Global recession is surely going to impact the value of all government issued fiat currencies and its purchasing power; this would see mass adoption of other assets such as gold or cryptocurrencies. Precious metals have always been considered a safe haven during the economic crisis but in today’s age, cryptocurrency is another best option. If global slowdown has to happen anytime soon, interest will shift towards cryptocurrencies. In today’s digital age cryptocurrencies are an ideal disaster asset which can safeguard hard-earned money. Masses have started realizing the long term gains of the crypto market and will surely resort to popular digital currencies like Bitcoin, Litecoin, Ethereum or Bitcoin Cash during crisis.

Crypto advocates from every part of the globe will be praying for the next global recession and hope that economic slowdown takes cryptos into the mainstream. Economic crisis means investors will find the safest option in the market, what better than digital currency. Crypto investments will see massive growth and eventually help the market to touch new heights. So far cryptocurrencyhas shown several features of safe haven, with economic slowdown investors will grab this new opportunity. The next few months is crucial and it will be interesting to see how the global economy shapes up.

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