Peter Berezin, chief global strategist at BCA Research, said: Stock Market We will experience a major crash by 2025. His prediction is noteworthy given the impact a stock market decline can have on the economy. Cryptocurrency Market.
Market experts predict 32% stock market crash
Berezin said: interview He predicts that the S&P 500 will fall 32% by next year, dropping to 3,750. He attributes this downward trend to a US economic recession, which he predicts could happen by the end of the year or early 2025. Consumer spending It has already hinted at this recession Households have no savings to spend and banks are tightening their lending standards.
Berezin also pointed to rising unemployment, which he said indicates a weakening labor market and could signal an impending recession. The market strategist warned that the Federal Reserve’s tightening monetary policy will make things worse as the central bank continues to “tread water.” Interest rate cuts.
A potential stock market decline could be caused by Bitcoin Strong positive correlation At times, it moves in tandem with the S&P 500. Whenever something like this happens, the price of Bitcoin, and therefore the broader cryptocurrency market, has been known to move in the same direction as the stock market.
Moreover, according to Berezin’s analysis, a recession could have a similar effect on the cryptocurrency market, reducing the amount of money consumers can invest in Bitcoin and altcoins. Trading Volume The cryptocurrency market could dry up, leading to a drop in the prices of these crypto tokens. It also shows that the cryptocurrency market is not immune to macroeconomic factors, given how the Fed reacted to its decision not to cut interest rates just yet.
Positive Factors for Bitcoin and the Cryptocurrency Market
United States June Consumer Price Index (CPI) Inflation data was released on July 11th, which was positive for Bitcoin and the cryptocurrency market, as inflation fell 0.1% from May to 3% annually, the lowest in three years. This development further strengthened the calls to buy back Bitcoin. The Federal Reserve cuts interest ratesDomestic inflation is calming down.
The interest rate cut Investor confidence There is a trend to invest more capital in risk assets such as Bitcoin and other cryptocurrencies. belief The Federal Reserve could cut interest rates by September. Monthly Inflation Data The country continues to show signs of slowing inflation.
At the time of writing, Bitcoin is trading at around $57,000, down about 2% over the past 24 hours. data From CoinMarketCap.
Featured image created by Dall.E, chart taken from Tradingview.com
