Bitfinex highlighted that central banks have made 35 rate cuts in the last three months, reminiscent of the 2009 crisis, which saw 76 rate cuts at its peak.
According to experts, investors’ shift to safer assets and falling yields on government bonds are classic indicators of a recession, reflecting a lack of confidence in sustainable economic growth. According to their estimates, the probability of a recession in the American economy is currently about 40%.
“Investor recession fears support Bitcoin’s safe-haven status but could put pressure on other cryptocurrencies,” Bitfinex said.
Altcoins are most at risk due to reduced liquidity and a weakening appetite for risk among investors. They may move funds to safer instruments, including bitcoin and gold, analysts noted.
Earlier, Matrixport specialists stated that the Bitcoin rate could show growth in the near future if traders react positively to the decline in inflation in the US.
Source: Bits
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