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

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin
Post a Comment
Read more

MSP Recovery and Tokenology aim to optimize healthcare with the help of Polygon

  MSP Recovery LLC, a Miami, US-based healthcare provider with an estimated enterprise value of $32.6 billion, is partnering with Web3 company Tokenology to jointly launch a new blockchain platform called Lifechain. Lifechain wants to leverage the verifiable and transparent nature of blockchain technology to aggregate medical care claims, medical expense reports and patient data and streamline their processing. For this purpose, MSP Recovery launched its own LifeWallet in January, which already has 1 million users. In addition to the wallet and blockchain platform, an associated crypto token called LifeCoin is also used. The press release explains that the primary purpose of the system is to enable secondary healthcare providers to more effectively bill health insurance companies for their costs. “The number of medical claims tokenized going forward will surpass $50 million per day by 2024. For this we need scalability, security and sustainability, which we have only found with Polygon
Post a Comment
Read more

British financial regulator criticizes cooperation between Binance and Paysafe

  The British financial regulator FCA has expressed concerns about the partnership between market-leading crypto exchange Binance and payment service provider Paysafe. As the British regulator complains, the partnership gives Binance access to the influential British payment network Faster Payments Service (FPS), from which the crypto exchange was previously cut off. Last June, the FCA ordered Binance to stop all business activities in Great Britain. As a result, prominent banks such as Barclays have terminated their cooperation with the leading crypto trading platform . Through the cooperation with Paysafe, Binance can now again offer deposits in British pounds sterling and transactions within the European Payments Area (SEPA). However, this fact is a thorn in the side of the FCA, as it classifies the crypto exchange as a “considerable risk factor”. However, the financial regulator sees little room for maneuver to counteract this, as the Financial Times reports . “ Paysafe understands
Post a Comment
Read more