Will the crypto market benefit from the next recession?

(View this answer on Musing.io)

In a normal recession it won't benefit at all because cryptocurrencies are highly speculative assets and investors dump those assets the first when things go down the drain. Cash is always king. (And bearish exposure to the market)

Even the "safe haven" cryptocurrencies like Bitcoin and Monero will probably drop a lot. You could compare it as a store of wealth to gold. Gold prices drop in a recession it's only later that the prices go up. Because there is a panic reaction at first and it can also be because of liquidity issues. 

However it's likely that we will see a scenario of stagflation which is actually good for cryptocurrencies.  In economics, stagflation is a situation in which the inflation rate is high, the economic growth rate slows, and unemployment remains steadily high. Inflation and fiat are like water and fire, you can ask the people that live in Venezuela. For them it's better to hold cryptocurrencies in a bear market than their national currency. Stagflation is not as extreme like the hyperinflation in Venezuela but it's kind of the same. Assets are king in such an event while you have to dump all your fiat.  

So the answer to your question is yes.

Check out this post: https://www.armstrongeconomics.com/armstrongeconomics101/economics/stagflation-versus-hyperinflation/