The word ‘recession’ sends jitters down one’s spine, as it can wipe away investments in a jiffy. A lifetime of hard-earned money could go down the drain in minutes and make investors lose all their savings. The murmurs of a recession are growing louder each month as analysts predict it could hit the markets this year. If the stock markets crash, the cryptocurrency markets could face an unprecedented bloodbath. Therefore, a recession is the worst thing that could happen to the cryptocurrency markets.
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Cryptocurrency Markets: 55% of Americans Fear They Will Go Bust If A Recession Hits
According to a recent survey by real estate data company Clever, 55% of Americans fear they will lose it all if a recession hits. The respondents in the survey said they would lose “everything” if the financial markets slip into a recession.
The study also shed light that 31% of the participants viewed the cryptocurrency markets in a negative light. Also, a whopping 80% of the respondents said that they believe a recession will hit the markets in 2023. In addition, 27% of participants said that “the global economy will collapse” in the next financial downturn.
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The survey also states that respondents worry about the future of their finances as the majority are living paycheck-to-paycheck. The rising cost of living, housing, and fulfilling basic necessitate are becoming hard to meet. Therefore, a recession could only make matters worse, as it could wipe the food off the table.
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Despite the rally in 2023, the grey cloud of an upcoming crash is hanging above the cryptocurrency markets. Bitcoin spiked from $16,500 to $24,000 this year making the overall cryptocurrency markets turn green after a depressive 2022. While some call the recent rally a bull trap, others believe it could head further before collapsing.