JAKARTA - Discussing the potential for a US economic recession and its impact on the crypto market, Blockchain.com CEO Peter Smith predicts the outcome. This was conveyed by Smith at the Qatar Economic Forum organized by Bloomberg.
Smith assesses that the possibility of defaults or recessions in the United States will affect the decline in the crypto market. Although the crypto market will be affected, it will not last long, causing a rapid recovery of the crypto market.
"In the long term, this might be good for crypto... If the US government fails to pay, we'll probably see a quick pull-back and then (occur) a very strong push up in the crypto market," said Peter Smith.
Smith also expressed his belief that the crypto market will recover slowly this year. Then, 2024 will be a very important year for crypto. He also highlighted the important events that occur in the Bitcoin network once every four years known as "Bitcoin halving" that will occur in April.
In addition, Blockchain.com is considering expanding its presence in the Middle East, particularly in Dubai, United Arab Emirates, given the progressive regulation of virtual assets there.
On the other hand, the global economy that is experiencing shocks also has an impact on the market. The disagreement regarding debt celing between President Joe Biden and the Republican Party is in the spotlight. If there is no agreement, it could have a negative impact on the global market.
However, if the deal is successful, it is likely that liquidity will increase in the financial market. In addition, the United States Federal Reserve is also scheduled to raise interest rates this year. Fed officials expect twice the interest rate rise due to the high inflation rate.
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