The U.S. Commerce Department announced last month that U.S. gross domestic product (GDP) fell for the second straight quarter.
By definition, a recession is “a period of temporary economic decline during which commercial and industrial activity is reduced, usually identified by a decline in GDP in two successive quarters.
With a significant box checked, is the US economy now in recession? And what exactly does this mean for investors and traders? Here’s a look at how anyone can survive the economic downturn using PrimeXBT trading tools.
Has the US economy entered a Fed-induced recession?
The global economy has not experienced a recession since The Great Recession of 2008. But the term is back again, and it has sent the stock market and cryptocurrencies into an extremely bearish trend.
As the year moved from 2021 to 2022, the market began to price in the US Federal Reserve’s plan to raise rates to combat rising consumer inflation. Supply chain issues and high demand resulting from the pandemic and economic stimulus have had a disruptive impact on markets that is still being felt.
Fed Chairman Jerome Powell said recently that he doesn’t believe the US economy has entered a recession and markets have reacted higher. With inflation at the highest rates in more than 40 years — something Powell called transitory in the past — it remains to be seen whether the Fed can create a soft landing for the economy and spare a global recession.
What if a recession hits?
If a recession hits, the recent bear market will be a walk in the park compared to what lies ahead. The stock market has since broken out of bear market territory. However, Bitcoin and other cryptocurrencies remain down more than 60% from 2021 peaks.
The best way to make money during a downtrend is to short rallies and bounces until there is a confirmed trend change. With PrimeXBT, the trend is always your friend, no matter which direction the market is heading. Shorting risky assets like stock indices and altcoins can turn the downside into a positive return on investment if a recession takes hold in the markets.
In the event that a recession is averted and a base can be established in Bitcoin and the stock market, traders have the option to hedge or go long and prepare to take advantage of any potential upside that arises. materializes.
How PrimeXBT can help you weather an economic storm
PrimeXBT also has built-in technical analysis tools so traders can always get an idea of the market environment before taking a position. The PrimeXBT Trading Academy teaches traders how to put these tools to good use with educational videos, while PrimeXBT Contests offers risk-free weekly competitions where traders can test strategies before implementing them in a technical trading system.
The award-winning trading platform also includes the Covesting copy trade module, where top-ranked strategy managers can earn extra income by attracting followers. The best marketers regularly realize a substantial return on investment, which subscribers can exploit by following. Following a trader will automatically copy their trades, earning what they do.
The PrimeXBT mobile app is also offered free as part of the experience. The smartphone app for iOS and Android devices provides constant access to global markets and its trading portfolio from anywhere in the world with just a tap or a swipe. The app also connects users to 24/7 customer support chat.
How to stay profitable during a recession with PrimeXBT
With so many tools and ways to generate income under one roof, PrimeXBT is the perfect solution to stay profitable even during the toughest economic downturns. If a recession is here, markets could become much more volatile. If a recession is averted, a short squeeze could turn into a longer-lasting bull rally.
Be ready for anything with PrimeXBTand make sure you’re equipped to weather the coming economic storm.