Bear Market Looms Over Traditional Markets – Are Cryptocurrencies Safe?
The recent macroeconomic climate has sparked concern among finance experts and experienced investors, with several banking giants crashing in recent weeks.
This has increased the risk of a bear market, which is the highest it has been in decades.
According to a chart published by an anonymous financial analyst called Game of Trades, the bear market probability model based on a 20-period moving average is presently at 0.8 points.
This probability level is the highest since the 1950s when the bear market probability was approximately 0.75 at one point.
Bear market probability is at a level NEVER seen since the 1950s
Buckle up pic.twitter.com/Ujh2XQN5hH
— Game of Trades (@GameofTrades_) April 27, 2023
The chart shows that this level of bear market probability was only reached again in the 1970s.
Experts advise investors to “buckle up” such as InTheMoneyStocks.com chief market strategist Gareth Soloway. Soloway predicts an “atrocious” market downturn for stocks and other assets in the near future after the United States Federal Reserve announced a “slight” and “transitory” recession, which he describes as “sugarcoating.”
READ MORE: U.S. Dollar on the Brink of a “Stunning Collapse”, According to Economist
On the other hand, in less-than-traditional assets such as Bitcoin, the bear market appears to be officially over. The flagship decentralized finance asset has recorded four consecutive months of closing on a bullish note, with several green candles observed on April 28 by Twitter user Bitcoin Archive.
#Bitcoin about to close UP 4 months in a row!
It has NEVER made a new low after this point. 🚀 pic.twitter.com/ex4w98055E— Bitcoin Archive (@BTC_Archive) April 28, 2023
The current movement in price and overall attitude has provided assurance to digital currency supporters who consider Bitcoin a safeguard against inflation and prioritize it over conventional fiat money.
This includes renowned financial author Robert Kiyosaki, who is recognized for his highly popular book ‘Rich Dad Poor Dad.’
In summary, while the risk of a bear market is high due to the current macroeconomic climate and banking crashes, Bitcoin is emerging as a promising investment option for those seeking a hedge against inflation.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
