– Display
Bitcoin risked in the year 2020, a new Crash, as a Wall Street warns Veteran in front of a 50 percent crash in the stock market.Scott Minerd, Chief Investment Officer of the New York-based company, Guggenheim Investments, predicts that the U.S. share until the next month their all-time lows of 23. March would test.A Long Squeeze on Wall Street could prompt investors to profitable Bitcoin positions to reduce macro-compensate for the loss.
According to Scott Minerd, the US could crash-stock market in the next month by up to 50 percent – and that, in turn, could have an impact on Bitcoin.
The Chief Investment Officer of New York-based company that Guggenheim Investments believes the S&P 500 is at its low of 23. March of 2.237,40.
He warns, furthermore, that the downturn could go on until the U.S. Benchmark Index of 1,600 has been reached, what are the summed net downward movement on almost 49 percent.
Minerds Declaration follows on from a strong 40-percent recovery of the US stock since 23. March. The recovery came after the US Central Bank had announced a series of emergency lending programs, including the reduction in interest rates to almost Zero, and the purchase of Treasury bonds and mortgage bonds.
The SPX Chart on TradingView.com shows the 40-percent recovery rally since the lows of 23. March. Source: TradingView.com
The aim of the policy of the Fed was to ensure that businesses and households affected by the pandemic Barrier, have access to credit. Nevertheless, the example of lots of quantitative easing, also to a dramatic increase in the balance sheet total of the Fed, which rose from 4.2 trillion in 2019, to 7.2 trillion dollars.
While the policy of the US helped the economy to recover, and the U.S. shares, in a so-called asset bubble. Minerd compares the market valuations with the values that were observed during the Dotcom bubble, and added that there is need for a calculation.
With the Loading of the Tweets, you accept the privacy policy of Twitter.
Learn more
Content download
Twitter Tweets unlock always
That explains why he believes that a crash of the S&P 500 is imminent.
Contents
Trouble for Bitcoin
The S&P 500 has not in any way a fundamental influence on Bitcoin, an eleven-year-old global asset that works outside the sphere of influence of the Wall Street. But: The proximity between the two different markets has grown since the pandemic radiating their negativity on global markets.
It all started with the global market routine in February and March 2020. As the governments abriegelten their economy as a whole, the spread of the Virus to contain, heard it is the Trader as a keyword, your profitable stocks for cash to give up.
As a result, stocks, bonds, Gold, and Bitcoin fell – all at the same time.
The Bitcoin chart TradingView.com compares its correlation with the SPX (purple), Gold (green) and US bonds (blue). Source: TradingView.com
The pandemic has prompted Bitcoin and the S&P 500, and to synchronize with the leading crypto-currency researchers PlanB. The noted that the correlation is 95% based on R-square values.
The Analyst also predicts that Bitcoin will rise to $ 18,000, if the S&P 500 marches on to the top. A bear market is possible, if the U.S. Benchmark starts to correct down.
Convinced of a stock market crash before Minerd also a scenario where the Fed starts to buy the US stock in order to avoid a Depression.
The Analyst on CNN:
“There is a point at which the US Central Bank, a Bazooka is necessary to pull out”
And:
“I think that the Option to buy shares of the Fed, is on the table.”
Such a scenario would leave the US Central Bank to print more dollars to support the U.S. stock market.
In the meantime, this step would expose the economy to the risks of higher Inflation, the unprecedented Fiat-range is caused. Top investors such as Paul Tudor Jones had seen this case already in the run-up to advance, and last month decided to Park a small part of their billion-Dollar portfolio in Bitcoin.
The Intervention of the Fed in the stock market, it could allow other Wall Street veterans, Bitcoin, due to its gold-like qualities to perceive. This could allow the crypto-currency, to rise up to the Rest of the year 2020.
– Display