When the US economy is in recession, Bitcoin price will not be enough momentum to bullish

There are many things to compare to Bitcoin, such as the Internet, like the 1960s Tulip Bubble. And now, people compare Bitcoin to the US economy. According to many analysts, the future of the US economy is uncertain. And so is Bitcoin.

when-the-economy-is-in-recession-bitcoin-price-will-not-be-enough-motivation-to-bullish

The recession has appeared for many years, but the market is still strong

According to CNBC analyst Michael Santoli, the future of the U.S. economy is “recharging” rather than in a “late-cycle.” Since the Great Recession, the current period is one of the longest bull runs in history. Although the recession usually lasts from seven to eight years. However, this situation has not yet happened. The recession has been coming for years, but the market is still active.

Santoli’s finding proves we are not in the last cycle of the market. It is merely recharging to work its way higher.

Santoli declares:

“There’s still significant upside for stocks as well, based on the recent upturn in global industrial surveys and central banking policies.”

Bitcoin has an extremely high correlation with the stock market

The correlation between the S&P 500 and BTC is a positive sign for this cryptocurrency. Thomas Lee, the founder of Fundstrat, shared that only when the S&P 500 stock index reaches a new shift, BTC can increase sharply. And pay attention to the annual profit of the S&P 500, when this number is more significant than 15%, the Bitcoin price has reached favorable conditions.

Bitcoin seems to have a strong correlation with the stock market. At the same time, if the economic downturn occurs and the stock market declines, Bitcoin will also be affected.

Although economists are heating up with the idea that more growth is possible on the table, it still cannot be said for sure. That’s because black swan events always take place in the financial markets – and with the upcoming election in 2020, this is a serious concern.

If the previous trends are correct, BTC needs a growing stock market to remain active. However, given that we are in one of the most extended periods of growth in the last century, a pull is still possible.

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