The economy completed its run of an upcycle and entered into recession mode. As we previously discussed, the timing, the markets, the industrial production growth, the COVID, the geopolitical environment, the real estate bubble, and the inflation all point in one direction in the global economy. It is entered into a downtrend. If you look at the GDP numbers the 1st quarter shows -1,6%. It means the economy shrunk by 1.6%. In the second quarter GDP shrunk by 0.9%. It is amazing to learn, that some prominent economists estimated the chance of a recession at 45%. Two quarters in a row is a self-evident sign of the down-trending economy. We think these experts are too slow to adjust to market conditions. We are calling the facts exactly what they are. The recession is here. The economy is diving. The recovery is not going to be quick and easy. The Fed does not have inflation under control. The only leverage it has is the rate hike. Even that can not tame the inflation at this point.
As a result of the rate hikes, the real estate market became stagnant, and the stock market is in a downtrend as well. Deep pockets are taking profits and looking to re-purchase the assets at a deep discount. The disruption of the supply chain due to COVID created disproportionate demand for products and services that were in balanced supply before the pandemic madness.
The geopolitical environment is adding fuel to the fire. Europe’s economy is under great stress due to the Russian oil and gas flow disruption and purchases controversy arising from the war in Ukraine. China’s obsession with Taiwan’s independence is threatening the supply chain of the already fragile semiconductors supply. To make a long story short - the global economy is entering the recession stage, after 12 years of steady growth and 2 years of explosive growth.
The wind is changing. In trading terms, the bears are going to defeat the bulls. There is the smell of blood in the air.
Let's take a look at the Crypto Market. It is not even 14 years old. The Crypto Market is very low in capitalization. It is hoovering around one trillion dollars. It is 100 times smaller than the assets under the management market. The Crypto Market represents less than 1% of the financial markets. There are many risks and challenges associated with small liquidity.
It is a very unpredictable market. Any large-size investor single handily can move the market upwards or downwards at any time. There is very limited governmental oversight and regulations, which could be good and bad at the same time.
On the other hand, for the very same reason (the tiny liquidity) this market represents an enormous opportunity for the people and institutions to build wealth and prosperity.
The more capital will be injected into the Crypto Market, the more opportunities to grow your crypto assets portfolio. We are convinced, that it will be the first market to recover from the recession because it does not require tens of trillions of dollars to recover and grow. Just one trillion dollars capital infusion will result in 100% growth.
The Crypto Market is attracting more and more institutional investors, it is getting recognition from some governmental agencies. There are many exchanges providing services for anyone interested in crypto. In the US the Coinbase exchange is a publicly traded company fully compliant with US law. There are many popular exchanges outside the US such as Binance, BitMex, FTX, Bybit, OKX, Huobi, Gate, and KuCoin just to name a few. They provide a great opportunity to get your feet wet with the world of crypto. We believe in the future of the crypto market so much, that even created a service, that enables anyone with crypto assets to follow the successful trading strategies of experienced traders. This service known as copy trading or social trading is called AIVIA and is integrated with Binance and BitMex exchanges.
We have a lot of respect and love for the prominent crypto community opinion leaders, as well as the professional crypto traders, trading signals providers, organizations with the large crypto community, and crypto investment clubs. We have created the opportunity for them to launch a copy trading (social trading business) under their brand within minutes. The best part is that your white label solution setup and launch are free. For all the bells and whistles you can check out our site aum.expert or just watch a short video
We have great confidence in the Crypto Market. With all the risks and uncertainties in our opinion, it has the most potential in the face of recession.
Until the next time.
AIVIA executive team