Why The Crypto Markets May Never Recover cryptocurrency Down
Why The Crypto Markets May Never Recover We are going to talk about this in detail and clear many points for you Why can’t the crypto market recover? We will give you our opinion on the reasons for this and also share with you the history of crypto. So if you are interested then you can read this article completely and increase your knowledge .cryptocurrency
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cryptocurrency warning Russia tonight not to escalate the war and now the financial crisis is brewing in China Futures plummet as September CPI comes in double expectations so some of you may think that the crypto markets will never recover even now interest rates are still climbing and we’re projected to have several more hikes so in this Artical I’m gonna go over four of the reasons why I believe the markets may never recover but towards the end of the Artical I’m going to be giving you my thoughts I’m going to be giving you the real picture on what’s actually happening through this time so the feds decide to decrease interest rates what normally happens within a typical economy is that we see borrowing cash becomes way cheaper when cash becomes cheaper consumers are more likely to take on debt purchase those risk assets and overall increase their spending consumption this can lead to economic growth because businesses become profitable and businesses can hire more employees leading to a strong labor market and the inflow of investors.cryptocurrency
Drive stock prices higher and result in that bull market we experience just a few years back cryptocurrency is surging to its highest level in nearly three years it is now up in nine of the past 11 days on the contrary when the FED increases interest rates then borrowing cash becomes more expensive when cash becomes more expensive consumers are less likely to take on debt they may not buy that house or that car and they may not be investing in those risk assets people become more incentivized to hold cash in their savings accounts instead of investing it back in the markets knowing all of that paying attention to interest rates right now is really really important and this is because it can still greatly influence the overall economy and financial markets well I wanted to share with you a quick history lesson on the U.S federal fund rates back in the 21st century now the late 2000s interest rates were hovering around 5.25 and within two to three years the FED dropped them all the way down to near zero percent during this time the housing bubble had popped and the 2008 financial crisis was in full effect and the Great Recession was brewing the reasoning cryptocurrency
behind the aggressive action from the Fed was that they needed a way to encourage consumer spending this financial crisis led to layoffs higher unemployment rates and people just holding on to their cash for dear life so to support businesses and help them weather the storm the Federal Reserve made it incredibly cheap to borrow money and in essence promoted consumer spending in the hopes that the recession would end quickly and in some fomc meetings the interest rates were being cut by 75 to even 100 at basis points now let’s fast forward to 2019 and 2012 20. at the end of 2019 interest rates were already down to 1.5 to 1.75 which is already considered a very low by our historical standards what we then saw as most you guys know is in early 2020 the covet pandemic came about and the U.S economy cryptocurrency
was on lockdown the Federal Reserve then decided to slash those rates to zero across two emergency meetings within 13 days of each other as the economy it was coming to a lockdown now imagine this though interest rates were at a historic low of zero percent for two years and at the same time the US was printing money like it never had done before these two reasons here greatly contributed to the 40-year high inflation rate we currently have today now fast forward just a little bit more March of 2022 this was the first interest rate hike since the covet pandemic and the Federal Reserve had showed no signs of slowing down now the first raid hike was only 25 basis points then in may we got a 50 basis Point hike and then in June and July and in September we’ve been receiving a 75 basis point hike bringing the interest rates from zero percent to 3.25 in just six months how high can the interest rates go from here on as of right now there is a general consensus that interest rates may reach a target of 4.5 to even 4.75 Target for the 2023 year before they start dropping it in 2024 and 2025. now I could be wrong on this but my personal prediction is that rates will go over five percent in 2023 so for anyone who may be in the process of buying a home I would try to lock in those rates now because I think there’s a better chance that it might go up in the short term and then if you want to refinance it later down the road you can still do that too we have to take a look at the broader picture and historically speaking our current interest rates is still relatively low back in 2006 interest rates were at 5.25 and in 2001 rates had reached the six percent mark now in the 1980s when inflation was at the all-time high 14 at point six percent the interest cryptocurrency
rates back then had increased to 19 to even 20 so although the 2022 aggressive rate hikes have pretty much shocked the markets we have not been getting a good reaction from other investment areas things could be worse Jerome Powell recently said in the last fomc meeting that there is more pain to come and if inflation goes higher into the double digits we really don’t know what the FED is going to do then could the rates reach six percent what about eight percent the truth is we really don’t know right now the reason why all of this ties in together is because until we see inflation and interest rates drop we likely won’t be seeing any major rebound happening within the financial crypto markets now the second reason why the crypto markets may have a hard time in its short-term recovery right now is because the financial markets and the global economy have taken a huge huge hit since the Russia and Ukraine war history has shown that markets and economies don’t tend to perform the best in times of war and turmoil just because there is heightened sense of uncertainty when a lot of these nations are at War and many people don’t know what to do when you have fear happening within other countries and people like citizens flying out and trying to escape a war that is going on and you have fear roaming their lives but last thing people often think about is the future a lot of people didn’t think the Ukraine and Russia War would last as long
as it did and on top of that the possibility of this war-turning nuclear is greatly increasing last week President Biden has said that the world is now at the highest risk of nuclear Armageddon currently we’re approaching the threat levels of what we saw back during the Cuban Missile Crisis so with reports of Putin continue to threaten Ukraine and NATO with nukes people are becoming more fearful about the future the question is will NATO join Ukraine in the war and send in armies to fight Russia well just last week even the United States Selective Service which is responsible for military conscription went ahead and came out this tweet at American parents stating that their sons are now required to register with the SSS they stated parents if your son is an only son in the last male in your family to carry the family name he is still required to register with the SSS and uh you click on the link to learn more about who needs to register there now maybe the timing of this tweet is just a coincidence with everything happening in the world but it does have a lot of citizens question why there is an emphasis being placed on men registering for the draft does the uncertainty of the current Russia and Ukraine
Feud have politicians within the U.S thinking that we may also be going to war soon now although that question is a little bit farther out than you know the Realms of what I know what I do know is this most people right now are feeling the fud from the economy from all the war and turmoil going on in the world and it’s also placing a lot of stress within the market where people are becoming more cautious about investing out of all those factors though the current global economy is still on a massive downwind right now where economies are suffering all over the world from the US to the UK and even other powerful countries like China so far the US has already had two consecutive quarters of decreasing GDP which is officially putting us into a recession as a few months ago on top of that our inflation rate is at a 40-year high with no signs of slowing down and in other parts of the world the UK just reported that their economy is now shrunk by 0.3 percent and they have an inflation rate of over nine percent too so every economy right now is suffering there’s prolonged economic difficulties and this is going to make it challenging for the markets to rebound during these times it seems like many central banks around the world are taking different approaches to battle the rampant inflation that we’re getting there are other central banks just like the Federal Reserve within the U.S that are fighting inflation more aggressively by raising those interest rates significantly and using quantitative tightening currently a lot of people know that there is indeed a light at the end of the Eternal but right now the disagreement is whether or not how fast that light will shine on look things may seem grim and it’s not good here in the reality of the situation but I want to keep it real on this channel I think it would be tough for the markets to turn around in this moment at this time but there is indeed a lot of good news still you need to realize that everything happening is temporary and that the crypto and financial markets still move in Cycles
despite all the crazy things taking place around the world I’m still very optimistic about the future of investing crypto and anything related to long-term growth of our economy every Global recession every single War every economic downturn has eventually come to an end now some may last longer than others but there is that light at the end of the tunnel and although we don’t know what it’s going to turn on it will turn on at some point and things will go back to normal and we will see more growth than we ever have before cryptocurrency
How To Invest Now
Bitcoin will recover the S P 500 will recover your investment portfolios it will recover and it will see higher gains than it ever did before so knowing all the information knowing all the staff that’s in the reality of the situation what should you be doing now and what can you do and miss these times so I think one of the best strategies in being able to make money through this time is to move against the pack while we see everyone running away from the markets thinking that things are going to go down even lower you should be dollar cost averaging slowly into the markets I say it a lot on this channel but it’s because I truly mean it dollar cost averaging is the best bear Market proof strategy where we can’t time things specifically but if you have even ten dollars twenty dollars or fifty dollars that you can put into the market and invest every few weeks consistently you’ll be able to take advantage of the low price of risk assets at this time spread it out so you can continue to invest without feeling like you’re putting too much money in there and to continue diversifying your Investments through different assets that exist right now it doesn’t have to just be crypto it could be stocks index funds and other safer Alternatives
although it’s a bit more work with your current self you know you got a budget maybe a little bit you can’t have that Boba that you want your future self will thank you it’s these type of tough times where we’ll know it ends and if you focus on what you can control now you’ll be at an amazing place when the markets rebound as Warren Buffett had famously quoted be fearful when others are greedy and be greedy only when others are fearful the future still looks bright okay there’s still a lot of opportunity and the last thing that you want to do is to get crippled with fear knowing you have all this cash and you didn’t do anything with it over the next few months all right so ladies and gents please make sure that you are investing and if you are investing there are certain tools within the US that the rich the elite they maximize in order to make sure that they get every single dollar that’s owed to them and one of those things is even being able to invest in things like a Roth IRA or asking your employer about your 401k fund and seeing how you can invest through that there’s a ton of exchanges you know you have FTX binance
coinbasecrypto the list goes on and on a lot of them do the same thing but people oftentimes sign up for these exchanges before they even max out these Financial tools like a Roth that they have in their pocket a Roth is really easy and all you have to do is just put money in it consistently then invest that and at a certain point you’ll be able to get that money completely tax-free so if it ends up being like a hundred thousand or two hundred thousand dollar portfolio and you have to pay 40 50 in taxes on that depending on where you live and how long you’ve actually kept it in there do not want to owe the government forty to fifty thousand dollars
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