Although Bitcoin and cryptocurrency markets are still addressing the negative impact of FTX desperation, Kristalina Georgieva, the chief executive of the International Monetary Fund (IMF), warned that the global recession may affect one third of the major economies. The chief executive of the International Monetary Fund said in an interview that the world economy will face difficulties in 2023.

Therefore, Georgieva described the slowdown of China's economic development as a major threat this year. Many key growth engines of the global economy - the United States and Europe - will experience the slowdown in economic development themselves.

Georgieva said: "In the past 40 years, China's growth in 2022 is likely to achieve or be smaller than that of the world for the first time.". She said frankly that because of the war between Ukraine and Russia, the economy of EU countries has already slowed down significantly.

The CEO of IMF also reminded that the new year "will be more difficult than the year we stayed". He stressed that emerging economies will also be severely hit by the slowdown of key economic powers,

It is estimated that one third of the global economy will be in deep recession. Even if a big country is not in deep recession, tens of millions of people will feel the recession of economic development.

She added: "Half of the EU member states will be in deep recession next year." She continued that the United States can avoid recession because it is "extremely tense" and can avoid recession. "We can see that the labor market is still very strong," Georgieva said

This is also... There are both good and bad news. If the labor market is very strong, the Federal Reserve will probably have to maintain higher annual interest rates to reduce inflation.

Therefore, as has been made clear in the FOMC meeting in the past, the U.S. labor market is undoubtedly the core of the U.S. Central Bank in determining when to adjust the key point. In the first week of the new year, some important data and information about the labor market will be released. In addition, the next inflation data will be released on December 12.

What do Bitcoin and Digital Currency mean?

This key point is one of the important links in 2023, which can be said to be a very controversial problem. It is obvious that Bitcoin did not honour its commitment to inflation hedging transactions in 2022. Although the YTD of gold is - 1%, the BTC price has dropped by a surprising 65%.

In fact, Bitcoin and digital currency have never been traded in a recession, so they lack historical time contrast. In addition, it is very obviousEspecially retail investorsWhen most people's economic development is not good, it will be very difficult to invest in BTC.

On the other hand, this should be a new opportunity for Bitcoin to become the "hardest loan currency" in the world, with a large supply of 21 million. Therefore, the key is, in the recession, how will consumption power be selected? Will it also be gold like in history, or will Bitcoin gain fair and just market share like digital gold?

As of the time of submission, the price of BTC is still the same. Bitcoin has risen by a small margin of 1% in the past 24 hours, with the buying and selling price of US $16671.

Featured pictures of Daniel Thomas/Unsplash, data chart of TradeView.com