While there are still huge clouds of uncertainty looming over the cryptocurrencies, studies suggest that the digital coins still stand a chance to thrive if they get suitable conditions. One such adverse situation is that of recession when a business cycle contraction takes place and it results in a general slowdown in economic activity. According to a recent survey conducted by Fundstrat, which covered some interesting views of people on cryptocurrencies with and it was noticed that the majority of people and institutions believe that the prices of cryptocurrencies could rise if there was a recession.
The survey took into consideration two sets of response for every question, one from the general public on Twitter and second from the institutions. Responding to the question of recession and the reaction of cryptocurrency prices, 28 percent of the institutions said that the recession would bring a positive change in the cryptocurrencies while 72 per cent of them said that the prices of the crytocurrencies would rise in recession. When a poll for same question was conducted on Twitter, 59 percent of the 5382 people who participated in the poll responded that they also believed that the prices of the virtual currencies would go high in recession.
During recession, when there is two-quarter of negative growth in GDP-the prices of stocks decline due to degrowth. Thus people switch their bets out of equities and move it to other assets like bonds and gold.
The FundStrat survey results have provided some amazing outcomes and we will have to see how much of this actually turns out to be true. But if the conclusion is to believe BTC and XRP clearly stand out as best investments.