2022 so far, with the losses he has suffered, it was not gentle against stocks and crypto. Bitcoin (BTC) lost about 37 percent of its value, although it reached the highest level of all time six months ago. Similarly, the S&P 500 has fallen about 17 percent since the beginning of the year. Gold prices are also trying to recover. We convey Kriptkoin.com analyst views and developments.
Some of the analysts are hopeful of the rest of 2022
Some analysts have hopeful of the rest of the year and announced that everything will not continue to fall. Bloomberg Intelligence’s senior Commodity strategist Mike McGlone shared his views on Twitter with the following words:
If stocks fall, Bitcoin, gold and bonds can shake the market. Especially if the Fed manages to hold his jaw, Bitcoin has a tendency to perform better than risky assets and most commodities.
In general, market observers are divided into two as to whether the Federal Reserve (FED) will move too fast and the rapid increases of stocks can cause stock prices. The NASDAQ index fell 28 percent to date, with most technology shares negatively affected by increasing rates. The Fed will probably have to have more interest rate hikes to restrain inflation, which will mean more volatility for the stock market in the short term, as McGlone points out.
“Fill the bucket, not the rise when golden rains”
The other two main classes have different reactions to increasing rates. Although crypto was introduced as a remedy for all the problems that may happen to the market such as rising interest rates, inflation and lack of purchasing power, it fell this year. Bitcoin’s decline began in November, when the Fed realized that the Fed announced that rates would be increased at the beginning and that market participants realized that liquidity could become a problem. However, analysts believe that the adoption of investors will lead to the crypton’s finishing year with a positive note. The commodities spent a solid year in which some of them, such as oil, wheat and nickel, reached the highest levels of all time. Some of these increases, fears of supply outage, prohibitions for Russian exports, seize the markets and Russia’s invasion of Ukraine.
As geopolitical tensions continue, prices will remain high until the dispute is resolved and some normality in the European markets are seen. The recent Covid -related quarantines in China brought about the supply chain stress, which led to some price fluctuations. In general, interest rates will probably continue to rise in 2022, but the real question will be how high? With solid gains in the US and solid foundations for certain corporate companies, it can now be a good time to get some shares. On the other hand, if prices continue to fall, Warren Buffett’s word may be useful:
Opportunities rarely come. When golden rains, fill the bucket, not the rise!
