11 August, 2022 Business



The finances and economy of one of the world powers such as the United States, are strongly affected by an environment that does not seem to improve over the months; the war between Russia and Ukraine continues, and despite the sanctions, the pandemic returns and with it the possible isolation in China, Visit Website.


On the other hand, the inflation that continues to increase, affecting the American nation's various economic and financial sectors, where everything depends on the extraordinary measures that the Fed continues to take, is a highly complex scenario.


FED policies may be less drastic

The next meeting of the Fed is expected on July 27; given the latest announcements regarding inflation and the possible measures that could be considered at this meeting, the financial markets have had setbacks, which shows that in the face of reports where it is limited to the economy the general behavior will be negative.


Everything now depends on the decisions to be made by the Fed; of course, an increase in interest rates is expected; what nobody specifies is how much this increase could be because, according to market evaluations through surveys, the results show an expected increase between 1 and 0.75% being conservative and optimistic.


All these aspects would accelerate the economy and finances towards a path that no country wants, and that is the "Recession" since the market and traditional operations in the producing sectors have slowed down.


In turn, an increase in energy rates is not beneficial for any of the parties that make up the country's economic engine.


Those in favor that inflation could be reaching its maximum level assume that interest rates will begin to decline, in favor of stabilizing the economy, considering that some indicators have been falling relatively, such as the price of gasoline.


Good news could be generated for Bitcoin, a less limiting scenario where the digital financial market could again expand and reach price levels higher than those at the beginning of the year but with a conservative touch.


How can Bitcoin benefit from these measures?

After the publication of the inflation rate for June, the alarms are activated before a new meeting of the Fed, which could be profitable for cryptocurrencies, as a result of which there could be unexpected sales of public debt bonds, which in turn could generate liquidity to acquire cryptocurrencies.


The most auspicious moment for investments in Bitcoin is the crisis because everyone is looking for an option that generates higher returns than traditional assets. This cryptocurrency has all the potential to do so as long as the market is not manipulated.


Another aspect from which Bitcoin could benefit is creating the national digital currency, which produces a positive outlook towards cryptocurrencies and blockchain technology, attracting more investors.


The pressure will continue on Bitcoin and cryptocurrencies

As has been seen, the cryptocurrency market has been suffering the consequences of the measures taken by the financial institutions that control the United States since the beginning of the year.


The economic context in which cryptocurrencies are submerged so far is not at all encouraging; the only positive thing is that, as is known, cryptocurrencies are usually cyclical, and it is only expected that the above cycle ends and can change the trend despite the measures extraordinary Fed.


Digital currencies have been characterized by being decentralized. Still, we are facing an utterly atypical scenario, where the decisions of the Fed are a crucial piece for the development of the price of Bitcoin and other cryptocurrencies.


Something unexpected, but it is necessary to consider if new extraordinary measures are generated, such as an excessive increase in interest rates, which would be reflected in an increase in the unemployment rate and, therefore, in the availability of income to invest.


All this would stagnate the digital financial market, entering a wait for the economy to realign and improve economic opportunities to invest in Bitcoin.



All this aims to assess what impact it could have on cryptocurrencies at a time when the digital market seems to be picking up after severe falls.


The measures may not be so extreme because what is sought is to stabilize the economy. Still, suppose no economic activity is generated. In that case, digital currencies' economic and financial growth and the general economy could be slow. For more information, enter to Bitcoin-Prime trading system


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