Analyst: Bitcoin Could Become a 'Safe-Haven Asset' While Torrents Are More Vulnerable to Recessions

Nansen analyst Aurelie Barthere estimates a 40 percent chance of a recession this year, and Bitfinex analysts say Bitcoin could act as a “safe-haven asset” during a recession, and that while the cryptocurrency market as a whole may suffer, the broader cryptocurrency market, and particularly the cottage coins, may be affected by a drop in liquidity and risk appetite. While the cryptocurrency market as a whole may be affected, the broader crypto market, especially torrents, may suffer from a decline in liquidity and risk appetite. Investors may become more risk-averse, shifting funds from risky assets such as small cryptocurrencies to safer investments.