Recession
A recession is one of the two parts of a business cycle.
A recession is one of the two parts of a business cycle. Officially, a recession occurs once there have been two consecutive quarters of a decline in the gross domestic product (GDP). A recession is characterized by many negative economic impacts, such as high unemployment and drops in the prices of many assets.
Recessions are generally short and rare, with the rest of the time spent in an expansion.
Recession is a macroeconomic concept that influences monetary policy, asset valuations, and investment decisions worldwide. Onramp's glossary explains Recession in the context of Bitcoin's role as a potential hedge against traditional economic risks and monetary policy changes.
Frequently Asked Questions
What is Recession?
Recession is a macroeconomic principle that describes conditions or measurements within the broader economy. It influences central bank decisions, government policy, and investor behavior across all asset classes.
How does Recession relate to Bitcoin?
Bitcoin's fixed supply of 21 million coins positions it as a potential counterbalance to economic forces described by Recession. Many investors turn to Bitcoin as a hedge when macroeconomic conditions shift.
How does Onramp help investors navigate Recession?
Onramp provides Bitcoin financial services including custody, IRA accounts, and educational resources that help investors understand how macroeconomic factors like Recession may affect their portfolio strategy.
