The global market to enter recession? How will Bitcoin work?

After the US GDP was released on July 28, it became known that the GDP had fallen by around -0.9%. However, US officials had claimed that there is no recession.

Meanwhile, BCA Reserache’s Chief Global Strategist Peter Berezin has revealed some recession-proof assets in which he thinks this will help investors weather the downturn period. Peter Berezin is not a big fan of Bitcoin or cryptocurrencies in general and feels they are useless.

Berezin says that consumer staples and health care are something investors should consider investing in to protect themselves during this economic downturn. This is because Berezin is of the opinion that consumer products will work relatively well compared to things that are optional.

However, even Berezin believes that the US has not yet entered the recession period, because he claims that the US is in a recession only when confirmed by the National Bureau of Economic Research.

Berezin’s view seems more in line with the White House, and he believes that the stability of the labor industry and the unemployment rate indicate that the United States is not in a recession.

Bitcoin performance during the recession

While the performance of the crypto market if there is a recession is considered, no one really knows the consequences. This is because Bitcoin was introduced in 2009, after the great financial crisis and global recession in 2008. Therefore, Bitcoin has yet to witness any full-blown recessionary period.

The National Bureau of Economic Research (NBER), which is charged with formally deciding whether a recession has occurred. In the year 2021, the company confirmed that the recession began in February 2020 and lasted until April 2020. GDP fell a staggering 31.4% during the second half, indicating a recession.

During this time, Bitcoin experienced a drop, but since the recession period did not last long, the crypto market did not feel the heat. Therefore, the reaction of Bitcoin to a recession is not really known.