In the previous week, risky assets revived slightly and tried to grow despite the continuing negative. In general, investors behave as if the conflict in Ukraine has been resolved, and with it all the problems associated with the rapid growth of commodity prices have disappeared.
Not to mention that at the last FOMC meeting, officials explicitly hinted at an accelerated tightening of monetary policy in the coming months as part of the fight against inflation.
This may not only deprive the markets of liquidity
Which the unrestrained growth of stock indices in 2020-2021 became possible, but also negatively affect the economic recovery.
Cryptocurrencies, like stocks, have been in a falling mode since November 2022, as a result of which some investment banks are already starting to talk about the imminent end of the correction. The main thing here is not to be overly optimistic: yes, after a rapid fall, greed wakes up in investors and they start buying cheaper assets (just like in 2020), but do not forget that most of the recessions could not be predicted. Therefore, until there are serious reasons for optimism, buying cryptocurrencies looks risky, especially against the backdrop of the unfolding fight against inflation from the Fed. Let me remind you that one of the drivers of the growth of the capitalization of the cryptocurrency market was precisely concerns about the decline in the value of money.
In such conditions, BTC is able to fall in price to $ 35 thousand.