Bitcoin prices are below $17,000 per bitcoin, the lowest since late 2020. raise serious concerns about major exchangesThe price of Ethereum also plummeted, with nearly $2 trillion worth wiped out of the combined crypto market in just 12 months.
now, Amid the New Crypto Exchange Panicblack rock
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“A recession is predicted as central banks race to keep inflation under control. This is the exact opposite of past recessions.” report“Contrary to what investors expected, a slowdown in growth under this new regime won’t help central banks. Equity valuations haven’t yet reflected the coming damage.”
Stock market bullishness that has pushed corporate valuations to all-time highs as the Federal Reserve flooded the market with cash. It happened in parallel with the market.
Prices have fallen across the board as the Fed struggles to control sharp inflation this year with a series of severe rate hikes that have pushed the economy to the brink of recession, with cryptocurrency prices crashing in high-growth technology. reflects the stock.
BlackRock’s team, led by vice chairman Philip Hildebrand, wrote, “We don’t think equities are fully priced into the recession.” “Corporate earnings forecasts do not fully reflect even a mild recession, which is why we are tactically underweight developed market equities.”
In November, Fed officials warned that slowing consumer spending, global economic risks, and further rate hikes had raised the chance of a US recession in 2023 to almost 50%.
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This week, the Fed hiked rates by 75 basis points for the fourth time in a row, followed by another 50 basis points, and pledged to keep raising rates until 2023 if needed to keep inflation in check.
Analysts at BlackRock have continued to warn that the “buy the dip” strategy will not work in this new economic environment.
“What worked in the past won’t work now,” said the strategist. “The old strategy of simply ‘buying dips’ doesn’t apply in this regime of sharper trade-offs and greater macro volatility, like we’ve experienced over the last decade.”
Meanwhile, Bitcoin, Ethereum and cryptocurrency market watchers have warned that the Bitcoin price has stalled this week.
“From a technical analysis perspective, Bitcoin has failed to catch up to levels above the 50-day moving average and is facing speculative pressure,” FxPro Senior Market Analyst Alex Kupzikevic said in an emailed statement. “But this kind of pressure usually lasts for a day or two, unless there is an external reason.”