We could face a leveraged domino effect. Because of the inflation, FED increases interest rates which reduces overall liquidity that is already limited at the moment. At a global level, it seems that nobody wants to start increasing interests first because this will lead to an appreciation of their currency, which will provoque a slow down of their export economy. All together, there are plenty of ingredients in place for a big crash. Unfortunately crypto, as one of many investment vehicules, can't escape from it, at least in the mid term.
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The Fed will increase rates aggressively but the yield curve is screaming STOP!!!.
We saw the long end of the curve call bullshit starting in December. It continues today. So the overall reading of the bond market is not for growth and inflation expectations. Instead, it is the exact opposite.
The LIBOR curve says the same thing.
A lack of liquidity is going to mean less economic growth which we saw since the end of the GFC.
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