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.”
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 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.