Bitcoin and other cryptocurrencies have been on a roller coaster ride over the last 18 months, starting in late 2021, when the Federal Reserve announced that it would aggressively raise interest rates to combat inflation at multi-decade highs. Higher rates threw cryptocurrencies and other assets such as stocks into a tailspin, with many cryptos plummeting more than 70 percent at one point.
The market spent much of last year fretting about a recession, and many economists, if not most, expect a recession at some point in 2023. But how might Bitcoin and other cryptos fare in an economic downturn?
Crypto is no safe haven
As investors weigh the possibilities of a recession, many are looking for assets to protect them from the potential storm. But experts say crypto isn’t the place to find it.