Crypto during a recession: Here’s what to expect

One of the major critiques of cryptocurrencies as investments is that they have no intrinsic value, because they don’t produce anything for their owners. — Dreamstime/TNS

Bitcoin, the largest cryptocurrency in the world, was created in 2009 during the depths of the great financial crisis. It took a while to gain traction, but it, along with other cryptocurrencies, has since exploded into a major market worth around US$1 trillion (RM4.47 trillion).

But with the broad crypto market falling sharply from all-time highs reached in November 2021 as the Federal Reserve raises interest rates to combat high inflation, many investors are wondering how Bitcoin and other crypto assets might fare if the economy slides into a recession.