According to a new market update from Crypto trading company QCP Capital, Bitcoin has not benefited from traditional security gatherings as the recession grows and the attention of the Federal Reserve shifts to economic risks on the negative side.
QCP: When Bitcoin slows down money, Fed shift focuses on recession risk
“Unlike gold, BTC was unable to capture the safe haven proposition,” QCP said, noting that the widely promoted “value alternative” narrative has failed to gain traction in the current macroeconomic environment.
Gold prices are rising based on recession concerns and expectations, while expectations for the Fed will take a more pleasing attitude, while Bitcoin continues to be largely in scope.
The company emphasized that investors’ positioning in the crypto market remains defensive, with participants focusing on protecting them from further declines rather than taking risks.
“There is a clear lack of convictions as macrohedges right now,” QCP said, adding that investors prioritize hedging strategies over aggressive accumulation as they await greater clarity from the Federal Reserve and broader macro signaling.
The shift in sentiment is because markets are digesting increasingly soft economic data, suggesting messages from the Fed and policymakers can suspend or reverse yield if indicators of recession continue to rise.
Despite Bitcoin’s resilience at the beginning of the year, QCP said current market behavior reflects uncertainty about its role in the potential slump. For now, traditional safe haven assets like gold appear to be stealing the spotlight.
*This is not investment advice.
