Crypto during a recession has never happened before - untreaded waters and what it could mean.

So let me start out by saying this.

Evergrande is officially bankrupt which means the Chinese markets are likely to plummet in the following weeks/months due to them defaulting on loans instantly now. Chinese economy is already wonky and has been for a while, but this might push them over the edge.

However, don't just think this will stay in China - contagion is a real issue where western companies invested in Chinese real estate or have loans outstanding to Evergrande will likely see massive losses, loans being worth pennies on the dollar. Bad times ahead, for every financial market.

So what does this mean for Crypto? As some of you may not know, financial malpractice in the years leading up to the 2008 crisis is what inspired Satoshi Nakamoto to create Bitcoin in the first place. So, this also means that Bitcoin and crypto in general has not lived through an actual recession yet. We had the COVID crash in 2020 as a little teaser, which caused us to plummet to $4k in just a few weeks time.

However, there is literally no telling how Crypto will do in a recession that is dragged out over years. Especially crucial since the halvening is set to occur during a potential recession. What we have learned over the past few months is that banks failing usually ended up in Bitcoin pumping, because after all Bitcoin was made as an alternative to banks. An elongated crisis period with many banks failing may cause turmoil in all markets, but could potentially be a bullcase for Bitcoin in the LONG RUN. Do not expect instant BTC to 100k if JP Morgan fails, we will plummet along with them at first, but if you are brave enough to hold through this, I have faith that we will be rewarded.