With bitcoin prices following the stock market as of late, it’s a reminder that the leading cryptocurrency is not immune to recession risks despite its classification as an alternative asset.
In a July 2022 World Economic Outlook, the International Monetary Fund (IMF) forecasted a slowdown in global growth. According to the IMF, 2022 will see an average GDP of 3.2% and then slow down to 2.9% in 2023.
“The risk of recession is particularly prominent in 2023, when in several economies growth is expected to bottom out, household savings accumulated during the pandemic will have declined, and even small shocks could cause economies to stall,” the IMF noted.
“For example, according to the latest forecasts, the United States will have real GDP growth of only 0.6 percent in the fourth quarter of 2023 on a year-over-year basis, which will make it increasingly challenging to avoid a recession,” they added.
Given the leading cryptocurrency’s recent correlation with the stock market, it’s easy to be hesitant to jump into digital currencies as a whole. However, it’s also easy to forget that even at around $20,000, bitcoin still presents a value option after seeing highs of close to $60,000 last year.
Getting Equivalent Bitcoin Exposure
As prices of the leading cryptocurrency have pulled back after a recent rally, this could give prospective investors an opportunity to play a rebound. Some investors, however, are still wary of investing directly in cryptocurrencies on typical crypto exchanges, which are not heavily regulated compared to a traditional stock market exchange.
Investors looking for an alternate way to play bullish prices in bitcoin can take a closer look at the ProShares Bitcoin ETF (BITO). The fund uses an active management strategy for dynamic exposure to bitcoin futures, putting the control of the fund in the hands of market experts.
BITO provides prospective investors with an alternate route to getting exposure to the leading cryptocurrency via a traditional market exchange. Adding BITO can give a portfolio diversified exposure to digital assets without actually investing in the cryptocurrency directly.
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