The post Why Bitcoin Could Benefit as a Potential Recession Looms appeared on BitcoinEthereumNews.com.

A series of disastrous economic results published on Friday has onlookers believing the United States economy is quickly spiraling into recession. But while the news initially coincided with a dip in the price of crypto assets, analysts say that a weaker U.S. dollar could ultimately benefit Bitcoin over the long term. The stock market tumbled Friday following the poor reports, with Bitcoin and other major cryptocurrencies following suit. Bitcoin’s price briefly jumped to $65,400 but then fell sharply, dipping to about $62,350 as of this writing. Nearly all of the top 100 cryptocurrencies are down on the day, excluding dollar-pegged stablecoins. According to the Bureau of Labor Statistics, the nation’s unemployment rate rose to 4.3% in July, up from 4.1% in June. Meanwhile, non-farm payroll employment rose by a meager 114,000 jobs, well under the 175,000 new jobs expected by economists, as polled by Reuters. The underwhelming reports pushed some market analysts and observers to declare that the long-theorized recession may finally be taking root in the United States. Disastrous day! Biggest stock market crash in Japan since Black Monday, 1987. Yields and $DXY cascade as the labor markets are getting weaker. The September Rate Cut is a certainty. The liquidity cycle to expand is a certainty. The U.S. is in big trouble. pic.twitter.com/gwyoKnINk2 — Michaël van de Poppe (@CryptoMichNL) August 2, 2024 “The recession has arrived. Inflation will soon spike,” tweeted financial commentator and noted Bitcoin critic Peter Schiff on Friday. He added that this is “one of the weakest labor markets in history.” The tech-heavy Nasdaq took a hard hit, falling nearly 2.5% as of this writing, with the S&P 500 and Dow both down nearly 2% each. Recessions are generally viewed unfavorably for stocks since they mean less income for businesses. But Bitcoin could break away from…

---

Filed under: News - @ August 4, 2024 10:22 am