Stock Markets and Bitcoin – Investors, traders, and economic analysts are keeping a keen watch on the performances of stock markets and crypto marketplaces. They believe that the next few weeks may prove critical for the global economic situation. The bitcoinsystem.app is a highly intelligent, and extremely knowledgeable, investment platform.
What Alessio Rastani Says
Alessio Rastani is a cryptocurrency analyst, as well as, a forex trader. His viewpoint is that the next few weeks should suffice to reveal the truth about a recession in the future. With the help of the stock markets’ behavior, it should prove easy to determine if the recession would last a short time or a long time.
He gave further clarifications in an interview with Cointelegraph. Probably, the S&P would rally, between October and December 2022. S&P refers to Standard and Poor, an index associated with the stock market.
The S&P index observes the performances of 500, highly reputed, and large-sized commercial ventures. These ventures find a place on the list saved by diverse stock exchanges across the U.S. The S&P equity index is extremely popular across the globe. Many companies offer it, unstinting trust.
In case, the S&P undergoes a bouncing, or the rally rises and drops again, it would indicate a long-term recession. In fact, this recession would almost resemble the scenario that had existed in 2008. Additionally, such a recession could go on until 2024.
In turn, the pricing of Bitcoin would undergo a negative impact. Bitcoin’s volatility over the next few weeks should show up.
Current S&P Performance
Several factors have contributed to a dismal performance. Nowhere during the last two years, had the S&P 500 index reached such as low level as it did in September 2022. The culprits contributing to this fall, include the tightening of Federal Reserve policies, as well as, trading under the June trough. Then again, investors have been reduced to calculating how much more stocks would have to plunge, before they gained an opportunity to stabilize.
Of course, the stock market had been feeling the pressure, ever since the U.S. Federal Reserve became aggressive in late August 2022. All the actions and comments were evidence of this aggression. They prompted the Central Bank to declare that its top priority was to remove high inflation. This motto would be in evidence, even if the nation’s economy went into recession.
Looking at the actual statistics, the S&P 500 did present a pathetic picture, in comparison to November 30, 2020. The index was at an all-time low of 3,623.29. Even though a late rally did help to better things to some extent, the index plunged again. It dropped by 7.75 points, to 3,647.29. The drop was 0.21%.
Tim Ghriskey is a Senior Portfolio Strategist at Ingalls & Snyder. From his office in New York, he concluded that should the Federal Reserve go on with increasing rates of interest, investors would remain confused and apprehensive. So, the stock market would continue to remain weak.
The Pound-Sterling Crisis
The value of the Pound had dropped by almost 5%, to $1.0327. It was the lowest figure on display, ever since Great Britain went decimal, way back in 1971. This is the outcome of wavering faith in the UK Government’s ability to manage the economy and economic assets.
True, the figure showed some improvement, thereafter. The Pound became equivalent to $1.05. However, the situation worsened, once again. The value of the currency plunged by 7%.
It is Akwasi Addo Alfred Kwarteng’s mini-budget that has led to public apprehension and loss of confidence. He is the Chancellor of the Exchequer and has been placing restrictions on spending measures. He has also been emphasizing increasing the number of tax cuts.
According to English economists, the pound compares very poorly against the U.S. dollar. This slumping in value, might encourage the Bank of England to come up with an emergency rise in the rate of interest. This would, in turn, help in supporting the British Pound. There is no guarantee, however, if such an action will work well, or not!
According to Rastani, the U.S. dollar is pressurizing most other fiat currencies. They include the Yen and the Euro. Therefore, it should soon be able to reach the top, outdoing the British Pound by a long way.