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Bitcoin's recovery journey is marred by fears of recession.
Bitcoin pricing in recession fears
A recession is a period of significant economic slowdown, typically defined as two consecutive quarters of declining gross domestic product (GDP). It is often marked by rising unemployment, reduced consumer spending, lower business investment, and tighter financial conditions as credit becomes more expensive or harder to access.
During recessions, investors often shift away from high-risk assets like Bitcoin toward safer options like cash or government bonds, or even gold.
Once the market realizes that no recession is on the horizon, it will renew appetite for risk-assets like Bitcoin and other cryptocurrencies.
More News on Bitcoin: Bitcoin would outperform gold
An absence of recession fears would also lead to Bitcoin outperforming gold.
Gold had an incredible year in 2025. Its price climbed 68.88%. In comparison, Bitcoin saw a decline of 6.1% in the same time period.
Bitcoin never performed badly consecutively for two years. It was either the best or the worst asset in any given year.
Looking back at 2025, on-chain activity influenced the price of Bitcoin rather than positive macro factors.
From long-term holders selling and profit taking, to short-term holders panic selling and the Oct. 10 liquidation event, everything resulted in the "mispricing" of Bitcoin.
This article has been published in thestreet.com via Yahoo News.
Analyst warns recession concerns are stalling Bitcoin's recovery
After a tough couple of months in 2025, Bitcoin (BTC) began the new year with renewed optimism. Albeit momentarily, Bitcoin has been trying to break past the $90,000 mark multiple times and even managed to touch $94,420 once. However, André Dragosch, Director and Head of Research at Bitwise ...
finance.yahoo.com
