Disclosure: The ideas and opinions expressed here are only for the author and do not represent the ideas and ideas of the editorial of Crypto.
The Federal Reserve has a long order: protecting the US dollar, which is quickly losing its value because the BRICS nations have detected the world after the dollar. From the perspective of the Federal Reserve, the approach is not clear because Trump’s policy plans are not clear. As far as someone knows, a serious market accident A la 2008 can occur on the horizon. The trade cycle theory suggests that these accidents are a natural part of economic activity.
An accident is always lying under the surface. In December 2024, Dow posted a streak of its first ten-day necklace since 1974, partially due to a reduction rate approach in the Federal Reserve, stating that it would cut only twice rates in 2025. Despite the losing streak, the stock market remains. In between Greatest Bull market in history.
The stock market has so far posted higher 57 times in 2024 so far. Since the global financial crisis of 2008, it has not been deeply improved. The markets quickly changed during the March 2020 Covid-19 accident.
Mother of all bubbles
With so long enthusiasm in the air, now there will be an apopos moment to pop to “mother of all bubbles”. There is a common feeling that stock will continue to perform well, but normal feelings are often wrong.
Big Pop can be postponed again if the fed continues to inject liquidity in the markets and slashes interest rates, which means more money for the stock market is lucky. Bitcoin (BTC) is never present in the environment without quantitative ease. How it can behave can be seen theoretically. However, until then, due to damage to inflation and interest rate policies, even main street investors are already accumulating their cash in shares.
Meanwhile, the US government’s debt increases continuously as the government inch is close to the need to take extraordinary measures to manage it. With constant increasing loans, the Fed can pivit at high interest rates, and the Department of Possibility (DOGE) can enter the era of fiscal penance. Beijing may opt for promoting consumption, investing in China can give dollars greed. In other words, there is still a lot of uncertainty in the global economy.
US stock prices improved other stock markets during 2024. In general, even the famous technical sector shares, despite a significant promotion of deficit expenses, improved their profits. Eventually, the outperform will end.
Bitcoin in a market accident
What happens to bitcoin in such an example?
The only example of a draw is the Kovid -19 stock market crash starting in late February and extends to March. As a recession, after becoming unavoidable, Dove Jones ended its most important point fall since the 1987 Black Mande Crash, even though the Federal Reserve said it would print in the $ 1.5 trillion money markets.
In this example, markets usually reversed quickly. This will not be a case in probably upcoming bubble pop, which will be more similar for the 2008 bubble crash. In 2020, it is still worth noting that Bitcoin rebounds several other assets, such as sleeping. It trading as high as high in February $ 10,300 and less as $ 5,002.58 on March 17. It traded at $ 11,000 as of 28 July.
A similar landscape will be played out today, falling rapidly with bitcoin, but thanks to its partially unqualified nature by holding a bid ahead of other risk objects. In view of the history of bitcoin, it will be an unstable ride – perhaps as low as $ 50,000 – equipped by a steep rebound. Bitcoin has long been in public mind as digital gold. Should that mentality be implemented, it is completely appropriate that from there, $ 500,000 and $ 1,000,000 BTC are admirable.
