How would a U.S. recession affect crypto?

A U.S. recession could affect crypto negatively. However, the affect would most likely be indirect, spilling over into other economies. This contagion could contribute to a global downturn, thereby putting downward pressure on crypto prices and reducing transaction volume overall.

There are many different ways that experts define a recession. They can look different in different periods of time or environments, making it difficult to define. Generally speaking, a recession is a decline in economic activity, spread across varying sectors of the economy and lasting more than a few months.

How do you survive a recession?

Many investors rebalance their portfolios into safer assets during recessions. Assets typically regarded as risk averse are sovereign bonds and precious metals. However, investors should keep in mind that this is liable to change, considering even real estate and related assets were considered risk averse before the 2008 Global Financial Crisis (GFC).