The US market has been facing challenging times and now there is another addition to the problem. In June, a measure used to monitor changes in the US business cycle fell for 15 straight months, with consumer confidence declining and jobless claims rising, Reuters reported. This is the longest period of decline since the period before the 2007–2009 recession.
The Conference Board reported that their Leading Economic Index, which predicts future economic activity, fell by 0.7% in June to 106.1 after losing 0.6% in May.
"Overall, the June data suggest that economic activity will continue to slow in the coming months," said Justyna Zabinska-La Monica, senior manager of business cycle indicators at The Conference Board.
Despite those concerns, many are turning to crypto and digital assets to save the day. Famous investor and trader, Hugh Hendry, while talking about the recession, stated that he would choose Bitcoin over gold.
Traders and investors are also looking for assets that will provide the best performance if a US recession occurs. Another analyst stated on Twitter that he believes one of the best performing cryptos if the US goes into recession is Kaspa.
Some in the industry think otherwise and do not consider crypto a safe haven. Many investors look for assets to protect them from economic downturns. However, according to some experts crypto is not the best asset to hold. Due to the volatility, Scott Sheridan, CEO of online broker Tastytrade, questions whether crypto can be considered a safe space.
Popular cryptos such as Bitcoin and Ethereum have fallen more than 70% from their highs as investors shun risky investments as interest rates rise. Although the major cryptocurrencies are still well below their highs, 2023 will see a rise in cryptocurrencies as market players change their view of the market due to predictions that rate hikes will end.
