2008 dump will repeat in 2025, crypto and stocks will go to zero Debt level, stock ratios and FED actions will destroy the market 🧵 Here is what's happening and how to prepare for Black Monday👇
1/❒ Housing market The housing market is currently at its lowest point since 2008 Home prices have dropped significantly, signaling potential instability If this trend continues, it could trigger a chain reaction in the broader economy
2/❒ Stock market ratios The stock-to-ratio levels are mirroring what we saw just before the 2008 crash This similarity raises alarms as it suggests that stocks may be significantly overvalued With such high valuation metrics, a correction could be imminent, and it’s likely to impact crypto markets as well 3/❒ Japan bonds Japan’s bond yields are at their highest level since 2008 If Japan Government Bonds face a sudden selloff, it could cause a global bond crisis This would send shockwaves through global financial markets, affecting liquidity in crypto markets, leading to a deep downturn
4/❒ Unrealized losses Banks are sitting on massive unrealized losses from bonds they hold If the bond market continues to struggle, these losses will materialize, potentially triggering a banking crisis Crypto could be hit hard as investors flee to more stable assets, causing a sharp downturn 5/❒ Debt levels Private and corporate debt have reached all-time highs As debt continues to accumulate, the risk of defaults increases, which could result in a market crash Such financial instability will spread to crypto as investors seek safer assets
6/❒ Stock market The top 7 stocks are driving 90% of the gains in the S&P 500 This kind of concentration is alarming because it indicates that the market is overly dependent on a handful of companies If these stocks fall, it will have a cascading effect on the broader market
7/❒ Dot-Com bubble We are witnessing the most concentrated market since the dot-com era Just like back then, speculative investments are driving up asset prices without proper fundamentals If the market corrects, it could mirror the 2000 dot-com bust
8/❒ Volatility Index The VIX is currently at its highest level since the start of the bull run This indicates increased market fear and uncertainty, and signals that investors are expecting higher volatility A market correction will lead to significant volatility in crypto prices
9/❒ Rate Cuts Historically, rate cuts have often been a precursor to a crash The 2008 crash occurred 6-9 months after the first rate cut, and we are seeing similar conditions today If the Fed cuts rates, it could signal trouble ahead, and markets may react negatively
10/❒ Buffett's Indicator The Buffett Indicator is above 200%, signaling we're in full bubble territory Warren Buffett is sitting on a record $330 billion in cash, indicating he’s hedging against a potential market crash The smart money is preparing for a downturn, and this caution could spill over into crypto markets, triggering a sell-off
All the above factors might escalate in days or weeks from this point It will be a good move to diversify your portfolio and rethink your strategy Always do your own research and stay safe.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content.See T&Cs.