@BitcoinBaby
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I am quite sure we should see some upwards movement the next couple of days..... If Putin and the Fed just could shut up till after the merge. #crypto
@BitcoinBaby
more from that month
6 comments
And what does Putin have to do with it?
I think I mentioned that... he closed the gas pipeline to the EU causing more Fear and Fud
The 60% reduction in the price of the main cryptocurrency since the beginning of the year is one of the sad consequences of the hawkish policy of the Federal Reserve System aimed at reducing inflation from the current level of 8.5% to the target 2%. In particular, this year the US central bank has raised the base rate in four stages to 2.25-2.5%. This tightening of monetary policy has increased investors' appetite for securities based on the US currency, to the detriment of riskier assets such as bitcoin. According to BankRate.com , U.S. savings banks are offering customers an annual interest yield of 2% or more, up from 0.5% earlier this year. An analysis by Goldman Sachs shows that open-ended investment funds with a total capital of $2.7 trillion under management increased their money supply by $208 billion in the first half of 2022, which is a record growth rate in the entire history of observations. So Putin has nothing to do with it. The gas pipeline is also working, but not at full capacity.
The gas pipeline is not working it had been closed down again over the weekend for so called repairs. And of course there are more globe macro economic factors in play but the European market got shocked on Monday as the pipelines were closed again. Gas prices are up 400% due to the dependency on Russian gas that was flowing with 25% after several days of not flowing at all due to repairs and as mentioned cut off again this weekend. Which drives big fear and uncertainty in the European market.
What does this have to do with cryptocurrency?
It will cause European to have less money to spend, driving it into a recession, which would make the markets dump further because there is no money to invest. But mainly these type of things drive fear in the population, fear of higher prices, people ending on the streets and fear = FUD and that is what I said FUD caused by FED and Putin's decision to no longer supply gas to Europe.