Bitcoin slips to nearly $20K; Citi predicts 50pc chance of recession

Bitcoin (BTC) slipped under the $20,000 level in Asian hours on Wednesday as a brief relief rally seemed to reverse amid recession fears in broader equity markets. Prices dropped to just over $19,900 at press time, causing a 4pc loss for traders in the past 24 hours and adding to a 7pc slide over the past week. The decline came as analysts at Morgan Stanley (MS) and Goldman Sachs (GS) warned on Tuesday that “recession risks were “not fully priced in.” “The bear market will not be over until recession arrives or the risk of one is extinguished,” Morgan Stanley said in its note. Meanwhile, Goldman analysts said stock traders were pricing in a mild recession, “leaving them exposed to a further deterioration in expectations.” Bitcoin has tracked broader markets closely over the past few months, meaning a further slide in broader markets could see bitcoin falling further over the coming weeks as traditional banks sound alarms on the state of the overall global economy. Crypto market observers say a long-term recovery in bitcoin prices would take place only when global sentiment turns position and signs of expansion. “Commodities market indicators and [European Union] bonds market meltdown spell out worrying predictions for the world economy.”