In economic and political turmoil, Bitcoin always soars. This was evident as the market surged during the U.S-China trade war and continues to play a major role in some regions including Iran, Venezuela, Zimbabwe, and Britain.
Particularly in the U.S, there has been growing fear that a recession could be on the way. This has seen many seek haven in Bitcoin. Now according to new findings, there is more reason to be alarmed at the prospect of a recession. The New York Fed’s recession indicator is now at its highest since 2008.
The New York Fed’s recession indicator is now at its highest since 2008. pic.twitter.com/l5RG8Gm8RY
— Tracy Alloway (@tracyalloway) July 9, 2019
This indicator lights up just months after a poll was done and 60% of economists agreed that the U.S was likely to undergo a recession by 2020. It also comes just days after the U.S president, Donald Trump, said the U.S “should match” China’s money printing game.
The U.S could be headed for some economic trouble with the dollar losing much value in the coming months. Bitcoin could then be the safest haven to ensure one is protected during a financial crisis.
This economic instability and demand for a safe asset have seen analysts such as Anthony “Pomp” Pompliano predict that Bitcoin will hit $100,000 by 2021. Others like Naeem Aslam, ThinkMarkets chief market analyst, believe this will happen before the end of the year.
Bitcoin (BTC) Price Update
Since the start of the day, Bitcoin has been nudging at the $13K position. Although it has climbed above this several times, it is struggling to remain above it. The bulls will continue to look for better positioning above this in the coming hours as they hope to surpass the asset’s current year high of $13,450 in the next couple of days.
Bitcoin’s surge has however come at a great cost for altcoins as we reported earlier. Bitcoin has extended its dominance to 65.1% at the time of press. This has seen nearly all altcoins turn red. Current drops for altcoins remain moderate, ranging between 2% to 4%. Bitcoin is enjoying a solid 5% gain at the time of press.