According to analysts at CryptoPotato, the value of Bitcoin, the first and most popular cryptocurrency, may experience significant changes due to the predictions of an upcoming recession.
The experts point to issues being faced by banks in both the US and Europe, and the growing number of negative forecasts due to the current banking crisis.
JP Morgan CEO, Jamie Dimon, believes that these events could lead to a recession in the economy that could last for several years.
While the current crisis is not similar to the 2008 financial crisis, the echoes of the current crisis will be felt for many years to come.
Depending on how the economy responds, Bitcoin may either rise significantly or fall rapidly. The entire cryptocurrency sector could also be affected.
The Federal Reserve is expected to reduce rates during a recession to boost economic growth, which could force investors to turn to the crypto market for an increase in capital.
Large investors have already begun increasing their positions in Bitcoin and other cryptocurrencies over the past week.