Current Financial Market's Five Major Crisis Signs
(1) Central Bank Policy Dilemma:
After a decade of quantitative easing and the accumulation of pandemic debt, global central banks are unable to implement easing policies again. The Federal Reserve is expected to lower interest rates only next year, with current rates at 4.5%. If central banks don't print money, there won't be enough money in the market to buy cryptocurrencies, leading to poor performance in the crypto market.
(2) Return of Inflation:
The reversal of globalization and protectionism are undermining supply chain stability. Tariff policies in the U.S. and the rise of the far-right in Europe are both anti-globalization. Everyday goods are becoming increasingly expensive for consumers, which makes central banks reluctant to lower interest rates, resulting in stagnation in the crypto market.
(3) Geopolitical Conflicts:
Direct threats to asset security. Conflicts between Iran and Israel, as well as Russia and Ukraine, could potentially trigger a third world war. Nuclear weapons may be reignited, necessitating caution. The crypto market is a risk asset market; when the cannon sounds, gold prices soar, and the crypto market will likely decline, with BTC possibly not being stable either.
(4) U.S. Stock Market Bubble:
The U.S. stock market, which accounts for two-thirds of global market value, is at historical high valuations. The U.S. stock market has risen for 10 years, with the AI boom further driving its surge 📈. However, if there is a 20% correction, like in March-April, BTC will also be affected.
(5) Trump Risk:
The world's largest economy, the United States, is being navigated by the unpredictable captain, Trump, whose irrational behavior continues to trigger violent market fluctuations.
