Bitcoin (BTC) is the only safe haven in the middle of a “full recession”, says host of InvestAnswers
A popular cryptanalyst issues a stern warning to all financial sectors as he breaks down the state of the macroeconomy.
The anonymous host of InvestAnswers tells its 442,000 YouTube subscribers that markets were worse off in the first half of 2022 than ever in the last half century, with markets suffering significant losses as interest rates rose.
“I’m alone about this, but I’m starting to see people turn around and starting to see the numbers we see. First, the economy has stopped, despite saying that GDP is strong and everything else.
No, it is not. All markets were crushed. Highest, worst fall in 50 years in the first six months of this year. Consumer confidence is at a record low …
The Fed’s fund interest rate was less than 1% last year – now it aims for 3.8% in early 2023. It is a 4x interest rate. We are in a full recession. No if, and and but about it. “
The analyst adds that the current situation is much worse than during the stock market dive in 2018 because the US added debt worth 9 trillion dollars in about four years.
“We have an empire built on debt that can not handle interest rates above 3.2%. It simply can not, and let me explain why in simple numbers. The maximum Fed Funds interest rate was 3.2% in 2018 and the markets crashed with $ 9 trillion less debt than they have now.
It’s only four or five years ago, so basically they can not also raise interest rates in a recession. My simple view of the world, and I would bet my lowest dollar on it. “
The InvestAnswers host notes that in the wake of both economic and political crises affecting European currencies, the strength of the US Dollar Index (DXY) has held up surprisingly well and even better than the Swiss franc in recent years. six months.
“There is nothing but ruin and gloom everywhere, but there is a little silver. According to what we see on DXY, it looks like it is peaking. It increased to almost 108, and it came straight down again. That type of formation tells us that it may be out of steam.
I think the time to secure was definitely earlier this year. [Previously] I had a question regarding the euro versus the Swiss franc, and I said that the Swiss franc was a safer place. As it turns out, the dollar would have performed slightly better by about 2% or 3% in that time frame. But no one expected the euro to crash so hard. “
The analyst concludes that people still have time to acquire hard assets such as Bitcoin (BTC) instead of fiat currencies as part of a strategy to hedge against future losses in their investment portfolios.
«The bright spot is, [since] it is probably too late to secure, get hard assets. Think of Bitcoin.
This is the way you secure your portfolio right now. It will preserve your purchasing power despite the fact that it is still considered a risky asset and still fills with everything else.
It is probably the safest option. Stay away from fiat currencies. They all have problems. “
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