Have We Entered a Financial Crisis? CRYPTO NEWS

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2022-09-16 21:29:42

Market situation

Bitcoin dropped from $21,000 to around $20,000. Altcoins also fell slightly.

The stock market was not good yesterday, all three Dow Jones, S&P 500 and Nasdaq indexes fell. Light green stock futures. Oil prices remained high at $111/barrel. Gold is still moving sideways around 1822 USD/ounce.

The first announcement on the CNBC page yesterday was that Tesla continued to lay off employees. Tesla is closing the office in San Mateo, California, where employees have been working to improve the company’s driver assistance system. The layoffs eliminate about 200 jobs as part of Tesla’s further cost-cutting efforts.

Not just Tesla, the number of companies and the number of people being laid off is increasing year-to-date.

Many companies think we are approaching a financial recession. Particularly, CEO of Ark Invest, Cathie Wood said that the US is in an economic recession. She also acknowledged that she had underestimated the severity and long-term effects of inflation. In addition, wars between Russia and Ukraine have disrupted supply chains and escalated commodity prices.

Another more optimistic person is the president of the Fed of New York State. New York State Fed President John Williams said he expects the US economy to avoid a recession even as he sees the need for significantly higher interest rates to keep inflation in check. He thinks the economy is strong and raising interest rates will only tighten the economy and slow growth.

The Fed’s definition of a recession requires at least two consecutive quarters of negative GDP growth. Currently, only the first quarter of 2022 has negative growth and the market is waiting for the GDP results of the second quarter. According to the Atlanta Fed’s estimate, the GDP of the second quarter may reach a positive growth of 0.3% and a crisis. The financial crisis hasn’t happened yet. By the end of July, the agencies in charge will have the numbers to report on GDP in the second quarter.

The crypto market is constantly changing

Robert Kiyosaki, the popular author of the best-selling book Rich Dad Poor Dad, said he is waiting for the Bitcoin price to retest the $1,100 mark. He said that losing BTC investors are giving up and added that he will buy more if the cryptocurrency recovers from that price. Many on Twitter disagree with Kiyosaki that Bitcoin will be able to drop to $1,100. Some people suspect that the author Rich Dad Poor Dad made a typo and that he really meant $11,000.

Many people wait for the price to drop to a certain level before investing. And when the price falls they think the price will fall even more. Many times this will cause them to lose the opportunity when the price turns up and they miss the market.

Many people do not believe, but there are investment funds that have quietly invested BTC very early. According to Tom Loverro, Coinbase board member until 2021 has revealed that many hedge funds have been investing in BTC since 2013. They are also accustomed to the market rebounding quickly after a drop. However, this drop makes it possible for BTC to take longer than months or years to recover. This took these investment funds by surprise.

Another view is that looking at the history of BTC to predict the price will have many holes. Because even though BTC has been around for 13 years, every time BTC and the market are very different and each cycle has changes. Therefore, it is difficult to look at the history and predict the change of the BTC price in the future.

Other information:

  • About 23 million Californians will soon receive up to $1,050 in inflation assistance under Governor Gavin Newsom’s budget agreement. This grant is deducted from the state of California’s excess tax dollars and is awarded based on salary.

  • Troubled crypto lender Celsius is doing its best to restore operations but has yet to make any specific announcements for users. A spokesperson for Celsius denied rumors that the company’s CEO attempted to flee the US last week amid the Celsius Network’s ongoing liquidity crisis.

  • Physical futures crypto exchange CoinFLEX will launch Recovery Value USD (rvUSD) tokens after it recently halted withdrawals due to a customer’s outstanding debt amounting to $47 million on the exchange. Translate.

  • Rapper Snoop Dogg and his son Cordell Broadus say they remain confident in the long-term future of the NFT. He thinks that NFTs are unique digital assets, like artwork and sports trading cards, that are verified and stored using blockchain technology.

  • Input-Output (IO), the company behind the Cardano blockchain, today announced that it has submitted a long-awaited update proposal for the Cardano testnet hard fork. Changes from the Vasil hard fork will take effect on July 3. The official network will be updated approximately four weeks later.

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