The market condition in the past week was in line with the overall economic trend.
Real estate markets have come to a stagnant stage, financial stock markets showed some losses in the wake of the inflation indicators, such as the Consumer Price Index (CPI) showed that inflation is not slowing downing at the expected rate. In the meantime, the American Government passed a bill that was supposed to slow down inflation, but at present, there are no signs of any control over inflation. The more ironic is the celebration of the passage of the bill on the day the CPI came out, and financial markets responded with the selloff.
The Fed will have to respond by hiking the rate by a minimum of 0.75%. This will help to strengthen the USD and probably will negatively affect the financial markets, real estate markets, and crypto markets around the world.
The American economy is just at the very beginning of the recession stage, and no question it will have consequences for the global economy.
The price increase for fuel will boost the price of food, consumer products, transportation, construction, and all major services.
Most conservative investors will buy government bonds to earn stable dividends.
As always happens in the contracting economy, the risk appetite is dying down and people are trying to park their money somewhere safe.
The crypto market will most likely respond much faster and in a more volatile way. There is one particular reason for it - the low liquidity. A relatively small infusion of capital will move the price of the crypto assets, as well as the outflow of the small amount of capital will put a lot of pressure on the crypto assets.
The largest crypto assets by capitalization are BTC (Bitcoin), ETH (Ethereum), BNB (Binance), XRP (Ripple), ADA (Cardano), and SOL (Solana). They are in the top ten crypto assets, that are traded on the crypto exchanges such as Binance, Bitmex, OKX, Bybit, Huobi, Coinbase, FTX, and Kucoin, just to name a few. Many of these exchanges are allowing futures contract trading.
By the way in the current market conditions, there are many opportunities to speculate on the price volatility. As with any other class of assets, there are many risks of losing the entire investments, but many experienced traders are positioned to make a great amount of profit by exploiting their knowledge and market conditions.
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Until the next time
AIVIA executive team