Bright Future For Crypto? United Nations Warns Central Banks Over Recession

• • United Nations Agency says The federal reserve and other central banks risk pushing the economy towards recession.
  • However, analysts predict a turnaround in the crypto market.

At a time of incoming financial recession, some analysts have predicted a change and turn in the crypto market. At the moment the crypto market is largely associated with the stock market but the possibility of an economic downturn could mean an advantage to crypto.

The United Nations Agency, warned several central banks, including the Federal Reserve System, over recession risks. Off late, cryptocurrency prices have remained stagnant around existing price ranges in the last few weeks.

Central banks are risking the chances of recession followed by a period of prolonged stagnation if they keep raising interest rates. United Nations Agency pointed out that the Federal Reserve System (Fed) risks causing crucial harm to developing countries if it persists with rapid rate rises.

The United Nations Conference on Trade and Development (UNCTAD) said that a percentage rise in the Fed’s interest rate notably lowers economic output in other first-world countries. Rebeca Grynspan, UNCTAD secretary-general, said that there is still room for avoiding the recession.

There’s still time to step back from the edge of recession. We have the tools to calm inflation and support all vulnerable groups. But the current course of action is hurting the most vulnerable, especially in developing countries and risks tipping the world into a global recession.

There are different opinions on how cryptocurrencies will prosper in a recession environment. The majority of the community thinks crypto assets would go down if the stock market falls. American investor Stan Druckenmiller is confident of a recession in 2023 and says it would favor the crypto market. He said that if distrust in Central Banks increases, cryptocurrencies could benefit. Likewise, experts feel like Bitcoin will diverge and form its path, thanks to its decentralized nature. Bitcoin’s (BTC) price has remained at the same level in the last 30 days. Over the last month, BTC’s trading went below the $19,700 level. As of writing Bitcoin is trading at $19,940.62, up 0.52% in the last 24 hours according to CoinMarketCap.