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The Federal Reserve has a high order. Protects US dollars. This quickly loses its value as Brics countries explore the world after the dollar. From the viewpoint of the Federal Reserve, Trump’s policy plan is unknown, so the outlook is unknown. As far as everyone knows, the 2008 serious market crash may be on the horizon. Business cycle theory suggests that these crashes are the natural part of economic activity.
The crash looks like it is always lurking under the surface. In December 2024, Dow recorded the first 10 consecutive victories since 1974. This states that only twice in 2025 will be reduced. During the most bullish market in history.
The stock market has recorded the highest in history in 2024 so far in history. Since the global financial crisis in 2008, there has been no deeply extended correction. During the crash of COVID-19 in March 2020, the market turned quite rapidly.
All bubbles mother
With a very long -term euphoria in the air, it is now an appropriate moment for “all bubbles mother” to pop. There is a general feeling that inventory continues to work well, but general emotions are often wrong.
If the Fed continues to inject fluidity into the market and continues to significantly reduce interest rates, Big Pop may be avoided again. Bitcoin (BTC) did not exist in the environment without quantitative easing. How it behaves is not theoretically seen. Until then, the interest rate policy of inflation and damage has already loaded cash in the stock.
On the other hand, as the government needs to take extraordinary measures to manage it, US government debt is steadily increasing. With the growing debt, the Fed has been able to pivot at a higher interest rate, and the government’s efficiency (DOGE) has led to the era of fiscal austerity. Beijing chooses to increase consumption and invites investment dollars to China. In other words, the global economy still has a lot of uncertainty.
US stock prices were better than other stock markets through 2024. Generally, even famous high -tex cector stocks exceed their profits, despite the significant boost from the deficit. Eventually, the out performance ends.
Market crash bitcoin
In such a case, what happens to bitcoin?
The only example of the lottery is the COVID-19 stock market collision extended from late February to March. Dow Jones has endured its most important points since the 1987 Black Monday Crash in the 1987 Black Monday, as the economic recession became inevitable.
In this example, the market generally recovered quickly. This is not the case with future bubble pops. This is similar to the 2008 bubble crash. It is still worth noting that Bitcoin has recovered more than many other assets, such as gold, in 2020. It was traded in February at $ 10,300, and on March 17 it was $ 5,002.58. It was traded for $ 11,000 by July 28.
A similar scenario has been developed today, and bitcoin is rapidly declining, but thanks to its non -elastic nature, it catches other risk products ahead of bidding. Along with the history of bitcoin, it will probably be a low -stop riding comfort of $ 50,000, which is followed by a sudden rebound. Bitcoin has long been in the public as a digital gold. If that idea remains, it is completely reasonable that the BTC of $ 500,000 and $ 1,000 to $ 1,000 is plausible.
