Oith bitcoin prices following the stock market lately, it is a reminder that the major cryptocurrency is not immune to recession risks despite its classification as an alternative asset.
In its July 2022 World Economic Outlook, the International Monetary Fund (IMF) predicted a slowdown in global growth. According to the IMF, 2022 will see an average GDP of 3.2%, then slow to 2.9% in 2023.
“The risk of recession is particularly significant 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 stall economies,” noted the IMF.
“For example, according to the latest forecasts, the United States will experience real GDP growth of only 0.6% in the fourth quarter of 2023 on an annual basis, which will make it increasingly difficult to avoid a recession,” said they stated. added.
Given the major 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 hitting highs of nearly $60,000 last year.
Get Equivalent Bitcoin Exposure
As the main cryptocurrency’s prices retreated after a recent rally, this could give potential investors an opportunity to play a rebound. Some investors, however, are still hesitant to invest directly in cryptocurrencies on typical crypto exchanges, which are not heavily regulated compared to a traditional stock exchange.
Investors looking for another way to play bullish bitcoin prices can take a closer look at the ProShares Bitcoin ETF (BITO). The fund uses an active management strategy for dynamic exposure to bitcoin futures, placing control of the fund in the hands of market experts.
BITO offers potential investors another route to gain exposure to the leading cryptocurrency through a traditional market exchange. Adding BITO can give a portfolio diversified exposure to digital assets without investing directly in cryptocurrency.
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