Bitcoin Likely to Survive Recession
Despite assurances from Federal Reserves Chairman Jerome Powell that there is no threat of a recession as of now, investors are wary with increasing inflation and slow down of growth. He however believes that the crisis of cryptocurrencies may worsen. He affirms saying, “more disruptive market will separate the wheat from the chaff”.
Some crypto investors believe that the Bitcoin may survive recession levels better than any other investment because of its independence from the stock market in general. Kyle Chapman of Cosimo Ventures believes that this strength can be attributed to the supply of bitcoin which is controlled by the people through the blockchain. It makes it the perfect shield from recession, especially one caused by inflation.
Ethereum Susceptible to Stock Market Drop While Ripple Could Fare Better
Etherium on the other hand would not fare as well. Chapman sees a correlation between the movement of the currency and the stock market. Ethereum is highly dependent on the developer using the platform. As the developer goes, so does Ethereum. If the developer’s market is down, Ethereum is sure to follow.
XRP on the Ripple Platform has an opposite trend to Etherium because it operates on an exchange away from stocks but it is still highly dependent of the adoption of the currency. The presence of other options like the JPM coin is a definite risk.
Bitcoin Cash Hits a Snag
The Blockchain currency market saw a decline as the market cap fell below the support level at the $128 billion mark. The Bitcoin Cash fell 4% to fall below the $130 support level. The decline has created a bearish angle that could lead to support levels all the way $125. If it pushes up, the next resistance will be encountered at $132. A breakthrough could push the currency even higher.