All around the world, we hear news of inflation, high commodity prices, increased interest rates, and even foreign debt defaults.
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How did we get here?
Maybe it is the over-the-top reaction to the C-19 pandemic. Businesses were shut down. Money was printed in the US to provide taxpayers with social support. Then, even before the calm of the storm, a war broke out, and the price of crude oil and wheat went through the roof.
In countries such as mine, debt has been a massive issue. 25% of debt in Kenya is external, and most, if not all, is dollar-denominated. So, every time the local currency depreciates, it adds to the debt. That means more taxes. Things are tough. Inflation is eating into earnings. The cost of food is going up. Expenses are going up, yet the end is nowhere in sight.
This is a familiar story all around the world. Some have it worse.
When I look at the crypto market, I see fear and anxiety. Bitcoin, in particular, is touted as a store of value. But that is not entirely correct, at least for the moment. The volatility of Bitcoin does not instill confidence in investors, especially when the global economy is swirling like a turd in the toilet bowl.
So, if people are selling their Bitcoin, what are they buying?
Precious metals such as gold and silver?
Wrong!
Looking at a Daily Chart of gold, people are selling that as well for some reason. An expanded view shows you that the gold market is trading within a range of about $400. Silver is similarly trading in a narrow range.
So, where is the money going?
I cannot answer that at the moment. My guess is people are cashing out their investments to enhance their monthly budgets. Basically, people are seeking liquidity in this challenging global economy.
Therefore, I estimate that we still haven’t locked in the bottom.
The good thing is that this will bring several profiteering opportunities. The bear market is a time for accumulating. Some of your favorite coins will go for dirt cheap, especially in the Hive ecosystem. Hive, LEO, and SPS are great coins to buy and hodl.
The only question you need to ask yourself is, how strong are your hands?
Posted Using LeoFinance Beta
