United Nations Claims A Recession Could Benefit Crypto Assets

Amid increasing fear of recession and interest rate hikes, the cryptocurrency market has succumbed to extreme volatility. Bitcoin is hovering between $18,000 and $20,000. The same is with the lead altcoin, Ethereum, which has lost its key level of $14,000 and is hovering around $1,300.

However, as per industry experts, the expected economic crash would benefit the crypto market. Yesterday, on October 3rd, the United Nations agency alerted central banks and the Federal Reserve of an upcoming recession. On the other hand, the crypto market has not faced a lot of volatility in the last few weeks.

Could A Recession Prove Beneficial For The Crypto Market?

The United Nations agency has claimed that with an attempt to increase the interest rates, the Central Banks are getting closer to recession days. Also, the Wall Street Journal reports claim that as per the agency, if the Fed continues its move towards interest rate hikes, developing countries shall be impacted more than developed or underdeveloped countries.

Meanwhile, the United Nations Conference on Trade and Development (UNCTAD) believes that the Federal Reserve’s attempt to raise the interest rate will bring down many developed countries’ economies.

Now, when it comes to the recession impacting the crypto market, the industry experts stand divided as most of them fear that if the stock market drops, so will the crypto market. 

However, one of the American investors, Stan Druckenmiller, believes that the recession, which will happen in 2023, is set to benefit the crypto market. This is because, as per the investor, if people lose faith in Central Banks, they turn to crypto assets. It’s just not that; the expert also asserts that because of its decentralized operation, the crypto market, especially Bitcoin, will gain people’s trust.

At the time of reporting, Bitcoin is selling at $20,109 after a surge of 0.75% over the last 24hrs.