About the risks: are we on the verge of a new crisis?
No matter how much we talk about the decentralization and independence of the Blockchain, it is impossible to deny the fact that the cryptoindustry is directly related to the classical stock market. The world of traditional investments directly affects the digital asset tomorrow. Therefore, it is extremely important to keep track of what is happening on the stock exchanges. And, apparently, we are on the verge of a crisis. Next – a detailed analysis of the prospects for the stock market. We will tell you what will happen next and how the situation on classic exchanges will affect digital assets. So let’s get started.
Why is Blockchain linked to the traditional marketplace?
It’s pretty simple. Despite the fact that Blockcain is a truly independent structure, with its own unique nature and rules, ordinary people use it. Ordinary investors buy digital assets, but not everyone is limited only to advanced new generation currencies. Many, even the most advanced users from the digital industry are directly related to the classic stock market. There are other equally well-known resources in the investment portfolios of large digital investors. Including the US dollar, shares in all kinds of businesses, and even precious metals. All this, along with BTC and ETH, is managed by the same people.
The future of the digital industry depends on their decisions. And today we are faced with the fact that the classic market is on the brink of a crisis. If traditional assets, like the stocks of large companies, plummet, investors will begin to treat cryptocurrencies differently. It all depends on what will happen to the market. We will talk about the prospects of stock exchanges right now.
Possible prospects and likelihood of a crisis
The problem is that many market dwellers are waiting for a repeat of the scenario we saw at the end of March 2020. Then, after a strong blow to large enterprises, many began to look at monetary relations in a new way. People realized that investing is an opportunity to get through the most difficult times and a great help for the main source of income. And indeed it is. Then, after March 16, 2020, completely new people entered the market. Which rehabilitated the situation on the stock exchanges.
But, unfortunately, not all of them are ready to continue working. The sharp increase in interest in investment led to the formation of the so-called bubble. This is a situation where the slightest excitement is enough to completely turn the situation on the exchanges. And the bubble is already formed. At least, this is the opinion of Isaac Becker, known throughout the world for his accurate market forecasts.
The expert believes that due to hasty decisions made during the quarantine and last year’s pandemic, the market is now on the verge of a serious crisis. Which, quite possibly, will last for several months or, in the worst case, several years. Indeed, one of the most lucrative market segments, the tech sector, is growing like never before. Companies like Tesla and SpaceX cost record money. Therefore, it is highly likely that ordinary investors will begin to massively sell their own savings. Securities will lose their scarcity, a protracted crisis will begin, for which one should prepare. Here are a few tips to help our readers get through the hard times they may be. We will look at the order of decisions for both classic securities and digital assets. So read it carefully.
What will happen to cryptocurrency? How to survive the crisis?
So, the first piece of advice that Isaac Becker is promoting and which is completely consistent with the logic is to remain calm. In difficult times, it is extremely important to stay sane and not make hasty decisions. It is quite possible that the crisis situation is far from its culmination, but the beginning has already been made. So we advise you to calmly deal with your investment portfolio. When it comes to classic stocks, you should look at solid stocks like the S&P 500. This is one of the fundamental assets. It will not disappear even in the most difficult times and will be your guarantor of the safety of your funds. Moreover, you can buy additional shares at a low crisis price.
Young and fast-growing organizations are better off for the time being. It is far from the fact that they will go through difficult times. So investing in bold but not particularly reliable companies should be postponed until a quieter environment.
What will happen to cryptocurrency? There are two options for the development of events. According to the first, after seeing the stock market crash, shareholders will turn their attention to BTC, ETH, XRP and other leading currencies. It is quite possible that digital funds will help those who are still afraid to invest in currencies and securities. But there is another scenario in which cryptocurrencies will fall down. It is likely that depositors will want to sell their digital savings in order to have time to invest the proceeds in more reliable, classic assets. Digital investors also need to remain vigilant and only partner with trusted organizations that will surely get through the difficult distance.
It should be understood that all of the above is only a possible scenario. However, these tips are universal and will definitely help you get through a crisis. And if not this year, then next. Remember that the main thing is to stay up to date with the latest developments in the crypto industry, the world of technology and investment. To do this, follow our news articles. We publish only high-quality, interesting material. Thanks for attention. Good luck!