HSBC, the largest banking institution in Hong Kong, has warned of an impending recession in the US, which could have repercussions on the European economy. The company recently announced its plans to open up cryptocurrency trading in Hong Kong, focusing on Bitcoin and Ethereum ETF futures, as it believes these markets will dominate due to regulatory tensions in the US. The Global Chief Strategist of HSBC’s Asian subsidiary predicts a US recession starting in Q4 2023, with a year of economic contraction for Europe as well. Despite this warning, supporters of the crypto market do not seem concerned, as they believe the recession risk has already been priced into the markets. However, a US recession could lead to panic selling in the cryptocurrency sector, affecting all existing cryptocurrencies. Additionally, mining companies in the US may struggle to continue operations, potentially impacting the hash rate. The uncertain future of the crypto market is further complicated by the complications of the traditional financial world, reinforcing the narrative of a decentralized economy. There are speculations that HSBC’s strategy is to spread fear, uncertainty, and doubt (FUD) in order to buy at lower prices.
Continue reading on Cryptonomist.ch
By
By
By
By
By