Tech disaster, Bitcoin and Crypto

Worst day of the year for the markets, ever American session who did not remember 2020 And it’s exhausting too Bitcoin Thus the entire market for Cryptocurrency. A worrying situation for many, with markets tense, if not desperate.

But is it really time to despair? The markets should always be approached rationally, which is why we decided to prepare a situation analysis. Also to understand how the markets can move.

What is happening in the markets? Our analysis

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Tech Wreck: Nasdaq Disaster Also Leads Bitcoin and Crypto Falls

Name chosen by American print evocative: technology wreckOr a disaster or a shipwreck Technique. The Nasdaq lost more 1,000 pointsOn the worst day since then 2020 The world’s leading stock exchange. Bad, really bad, the headlines Techniquewho love readers They should know by now that they have long since been closely related to their own affairs Bitcoin and world Cryptocurrency.

A shipwreck brought down the market too Cryptocurrency With losses in some cases close to double digits. Bitcoin It also fell below i $36000then recovers and stabilizes, at the time of writing, about $36,500. Low numbers considering the fact that they were only trying a few hours ago to regain altitude 40 thousand dollars. All within a whirlwind of events and changes in attitudes on the part of the left markets stunned Even the most baffled market analyst. But let’s go in order.

First the Powell holidays, then the fear returns

The succession of events was one of the most intriguing. After the expected rate increase by 0.50% in United States of America The The markets were roastedeven because of Jerome Powellhead to feed itessentially ruling out the possibility of increases in the following months in 75 basis points. All this while emphasizing the exclusion of a problem credibility from feed it. Instead it was just enough 24 hours To the markets to quickly change course, the price of a possible rise in June 75 basis points And moving forward with back-to-back sales that literally killed the already plummeting stocks in the tech sector.

Needless to say, there is a problem. Powell It certainly doesn’t shine for credibility as a source of inflation that markets are now afraid of Completely out of control, along with slow growth if not completely absent. nightmare Inflation accompanied by economic stagnationwhich no one feels uttered out of luck, is becoming more and more realistic.

Thus, the reaction of the markets, from time to time, Responsible Although it may not have been scaled significantly. Based on the fact that it might have been too much for us to be able to play our cards in the market, while what will be there may be closed the sixth week below in red to Bitcoin. Something that hasn’t been seen for a long time.

Maximum uncertainty among analysts, even if…

Uncertainty among analysts is the maximum, not only regarding Bitcoin And Ethereum – which will continue to upset the balance of the entire sector – but also for the stock sector. There are those who claim that they have not seen such a situation since then Crisis 2008-09 – and those who say they are concerned about the actual ability to feed it To return inflation to more acceptable levels. Important considerations can be made in this regard.

  • Normalization of the situation in Ukraine

Although it conflicts with Powell We don’t think this is one of the primary reasons for inflation to persist at all levels, especially the energy level, we’re sure some sort of normalization of the situation would be able to lend a big hand. Of course, the end of the war is not in sight and then we will also have to deal with the political situation in RussiaAs it seems clear that neither side wants to end the issue at the present time, led by the Western bloc United States of America who seems to want to try to push to system change to flies. If you want to find a new one though balance pointwe can be relatively certain that we will return to lower inflation levels.

  • You can’t bleed like this forever

Markets usually react very violently, especially in situations of this degree of uncertainty, and then try to correct the game. The fact that increased 75 basis points It opens to two alternatives. Either it will already be there and nothing will change, since it has already been priced, or with a lower effective interest rate hike, the markets will recover significantly.

  • Cutting the Federal Reserve’s balance sheet is also scary

Which will start gradually soon and will have a pressing effect on the markets, with interest rates Warranty More solid that rises dangerously. Without central bank drugs, there are also many economies that can start squeak.

Good buying opportunity?

We are moving towards a weekend We enter into a state of mind that is nothing but calm. session Asia It opened without major concerns but it will again be the American session, which opened with us Italians 15:30 to lead the dances. If volatility is confirmed, then with Capital.comGo here for a free virtual account with unlimited trial capital And Equipped with artificial intelligence for trading We will have the best tools for short trading, riding any kind of trend, up and down.

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