Skip to main content

Wall Street Analyst: Federal Reserve Controls Crypto & Asset Prices

 


A market analyst from Cubic Analytics commented on the US Federal Reserve's impact on cryptocurrencies and broader assets through questionable fiscal policies.


On Anthony "Pomp" Pompliano's "Best Business Show" on June 20, Caleb Franzen, senior market analyst at Cubic Analytics, explained how the Federal Reserve controls asset prices.


When asked about the connections between a wide range of assets and the current economic environment , Franzen replied that yields and asset prices show an inverse correlation.


The crypto market and inflation

The Fed's tightening of monetary policy is causing investors to sell off assets of all kinds.


“In this environment, we could see that assets from all areas, whether stocks or bitcoin and cryptocurrencies or even government bonds, are sold off in the bond market.”


Unless there is a formal change in the yield environment, there will be no bull market, Franzen added. Financial analysts are generally convinced that the crypto market will not recover until the macroeconomic currency situation is under control.


The inflation rate is currently at 8.6% , a forty-year high. It took around 18 months for the inflation rate to reach today's catastrophic levels after surpassing the 2 percent mark. Under these conditions, despite the Fed's best efforts, it is unlikely that the currency situation will improve in the coming months.


Franzen explained that the Fed is lagging behind in this area, so a turnaround in inflation data could be a "general foreshadowing of a reversal in the monetary policy environment".

Current market conditions are comparable to the 2018 bear market . Back then, the crypto market bottomed in December when the Fed officially suspended rate hikes. This move coincided with a massive stock market crash in the same month.


A similar crash also happened in March 2020. At that time, the Fed declared that it would support the monetary and financial system indefinitely. The opposite case happened in November 2021 in the crypto market. When the Fed announced that it would reduce the money supply, the crypto market hit a new high.


“It's a super simple and rough gauge of where asset prices are headed going forward. In the monetary wonderland we find ourselves in, this benchmark is super accurate.”


Compound Capital Advisors founder and CEO Charlie Bilello spoke pompously about similar forecasts and analysis a few days earlier. The Wall Street analyst also explained that the Federal Reserve has a major impact on asset prices and market cycles. Bilello also confirmed that the Federal Reserve is lagging behind at the moment.


Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information found on our website is entirely at their own risk.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

The 5 largest platforms for non-fungible token (NFT) collectibles

  Since the beginning of 2021, non-fungible tokens (NFT) have had no holding back and the sector is setting new records almost every day.  More and more artists, stars and brands are realizing the potential - NFT are well on their way to catapulting the crypto space into the mainstream.  But which collectibles are currently the most popular? What are NFT? NFT are unique tokens that cannot be exchanged one-for-one for an equivalent token.  Any asset that is tokenizable can be an NFT.  This includes, for example, (digital) works of art, trading cards, game items and crypto domains.  Theoretically, however, real estate or securities can also be mapped as NFT. NFTs can be used to transparently map ownership structures on a public blockchain.  This allows them to store value just like real objects, even if additional copies are easy to make.  For example, the original picture of the Mona Lisa is significantly more valuable than a photo, as everyone kno...
11 comments
Read more

CARDALONIA: THE CARDANO METAVERSE OPENS THE GATES!

  Have you ever been to Cardalonia? With these words, the Cardano Metaverse called Cardalonia starts the gates. In this 3D world, developers and users can interact with each other. First of all, users have to create an individual character with which they can move online. After that you can enter one of the worlds built by developers with this character. You can also purchase your own land in the Cardano Metaverse via the marketplaces in Cardalonia . This is secured by Cardano's blockchain technology and therefore offers a relatively secure transfer of ownership. Since these are only digital plots of land, it is not yet entirely clear when the plots of land are purchased whether they can also be sold again in the future. A possible profit cannot be estimated at the moment. In Cardalonia, the cryptocurrency Lonia is used. The maximum amount of tokens in circulation is 100,000,000. The team consists of Alice Sand (Co-Founder), Vasil Air (CTO) and Dustan Water (Fullstack Developer). T...
Post a Comment
Read more

Cardano: This is the vision that founder Charles Hoskinson has

  The Altcoin Cardano has tended to decline in recent weeks.  The Alonzo upgrade was supposed to bring improvements, but it soon turned out to be a disappointment.  Cardano founder Charles Hoskinson presented his vision for the cyber motto in a live Twitter video. • Cardano in the last few months under pressure • Charles Hoskinson explains his Cardano vision via Twitter • Security and privacy at the center The cryptocurrency  Cardano  has had a difficult few months.  While founder Charles Hoskinson's cyber motto has had a strong run in 2021, it has been steadily downhill in recent months.  Cardano is faced with some difficulties.  The so-called Alonzo upgrade went live in mid-September, for which crypto fans had high hopes, but which soon turned out to be a disappointment.  The upgrade should make it possible to use smart contracts on the cryptocurrency as well.  It soon turned out, however, that although these were entered into Cardano,...
Post a Comment
Read more