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Inflation to Recession: Digital Assets Adoption Heightens Financial Stability – Margex Report

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Bitcoin News / Bitcoinist 61 Views

Surging inflation in recent times, rising interest rates, stock market volatility, and uncertainty of macroeconomic events have led to speculation of an impending recession in the coming years. However, this alarm has been sounding for a while now.

A notable sign since 2022 has been a drastic decline in the gross domestic product (GDP), leading many economists to suggest that 2025, leading up to 2026, could develop into a full-fledged recession. 

Despite strong growth, the U.S. economy is gradually slowing down. The July 2024 jobs report suggested the unemployment rate would rise for four consecutive months, sparking more fears of an impending recession. 

In light of these developments, J.P. Morgan Research suggests the probability of the U.S. and the global economy entering into recession in 2025 with a probability score of 45%. 

Important elements to foster economic growth have been challenged in the U.S. and the global financial market. News hints at a sharper-than-expected decline in labor demands and a loss of momentum in global manufacturing and the Euro area. 

Source – OECD

The data from the OECD suggest that GDP has stagnated compared to past years across different countries and could continue to decrease in coming years as inflation rises, leading to speculative talks of an impending recession.

While the talk of recession is a cause for worry, they don’t last forever and allow many investors to invest in reliable assets as a hedge for inflation and recession, with much emphasis placed on digital assets such as cryptocurrencies. 

This article focuses on how inflation and recession have affected the economy, how users leverage bonds and digital assets such as cryptocurrency to battle recession and inflation, and how users can remain profitable by using cryptocurrency and Margex copy trading strategy. 

Inflation – Recession of 2008/2009

The 2007-2008 financial crisis was the most severe global financial crisis since the Great Depression. Subprime mortgages targeting low-income homebuyers, excessive risk-taking by financial institutions, toxic assets within banks, and the bursting of the United States housing bubble were the catalysts of the Great Recession. 

Global financial institutions suffered severe damages, reaching a climax with many filing for bankruptcy, such as the Lehman Brothers on September 15, 2008, and other banking organizations affected. 

Despite the United States government implementing some policies to help alleviate this crisis, this period led to the Great Recession, considering how the economic situation affected many poor and the average class became poor. 

The fear of financial crisis in the past has heightened much attention for investors and users to turn to bonds and digital assets as a hedge against current inflation and a speculative recession. 

Mass Adoption for Cryptocurrency Digital Assets 

Source – Glassnode Stablecoin Growth

Historically, cryptocurrency assets have shown much resilience during economic instability, with Bitcoin viewed as digital gold and a hedge against inflation and recession. The speculation of a pending recession presents a huge opportunity for many persons looking to leverage digital currency.

During the COVID-19 era, which was plagued with recession, many investors fled to safer assets, with many trying out digital assets, which brought many benefits, such as exponential gains in the bull market of 2020, as many got exposed to cryptocurrencies. 

The chart from Glassnode shows the exposure of many institutions and companies leveraging stablecoins for transactions, with institutions and countries pushing to create their own stablecoins in recent times.

The mass adoption of digital assets can not be swept under the carpet, as it has proven to be a tool with many opportunities for people looking to leverage it and grow a robust portfolio. 

With financial policies in place to help many cryptocurrency projects, institutions are leveraging the potential the cryptocurrency market possesses and offering users opportunities to trade Bitcoin spot exchange-traded funds (BTC spot ETF).

Leveraging a cryptocurrency project opens the door to endless opportunities that many users and investors are exposed to. Users explore these opportunities through reliable and trusted cryptocurrency exchanges such as Margex exchange, which continues to provide the best trading experience to all kinds of users. 

Exploring the Potential of Cryptocurrencies Through Margex Copy Trading 

Margex copy trading platform remains the top-leading cryptocurrency exchange designed for users of all kinds, be they experts or novice traders. Users with little to no trading or cryptocurrency experience can become informed and grow their portfolio while learning much about cryptocurrency.

With its unique trading interface, Margex exchange has been designed to meet the usability of all users and give users the best experience while using Margex to carry out transactions. 

As a copy trading platform, Margex allows users to mirror the trades of experienced traders, adopt strategies, and earn returns while also focusing on improving their own strategies, expanding their cryptocurrency knowledge, and diversifying their portfolios. 

Margex users also have the chance to utilize different features present on the Margex platform to boost their trading journey. Some of these features include a zero-fee converter to enable seamless swapping of crypto pairs and different instant deposits and withdrawals, including Kaspa and Margex TON; these are features present on Margex platform to help users trade better.

Cryptocurrency and copy trading has taken the financial world by storm, and many new users are leveraging these new opportunities in the financial world to make returns on their investments. The Margex platform remains reliable and easy to use for all kinds of users or traders.

How to initiate your first copy trading journey on Margex platform with as low as $10;

  1. Open a copy trading account with Margex
  1. Deposit with as low as $10 using different deposit options such as Kaspa or Toncoin for fast deposit
  1. Head over to the copy trading dashboard to follow your preferred trader 
  1. Decide on the amount you wish to initiate your copy trading experience
  1. Confirm all processes above and click confirm to begin your journey to profitability.

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