Bitwise analysts have explored the impact of U.S. recession concerns on Bitcoin's price, foreseeing potential risks of further declines.
Bitcoin and Recession Concerns
According to Bitwise analysts, Bitcoin and other altcoins have likely already factored in much of the U.S. recession fears. However, there's still a chance for further downside if the recession actually occurs.
Historical Bitcoin Data
Past recessions have shown mixed results for Bitcoin. During the 2020 COVID recession, Bitcoin dropped over 50% but ended the year up more than 300%.
Prospects and Uncertainties
Analysts observe signs of 'peak uncertainty'. U.S. economic policy uncertainty is as high as during COVID, and Google searches for 'recession' are similarly high.
Thus, while recession risks are partly priced into Bitcoin, analysts warn of potential further declines if economic conditions worsen.
