Stagflation could be on the horizon, Crypto.com scales back their rewards and infuriates their user base, while Algorand kicks it up almost 20% after becoming the blockchain sponsor of the 2022 FIFA World Cup. This is your crypto news wrap-up.
Be aware of all news! Download Jet-Bot copy trading platform!Earn from 200% up to 2,000% APY! People should rest, robots should earn money!
Let’s get it! Investors are bracing for sharp changes in financial markets. After nearly three decades of calm, inflation has exploded in advanced economies around the world. As a result, it might be harder to find a job soon. Forecasters think global growth is going to stall. American households are pretty unhappy. And when the households are unhappy, they tend to spend a little less. But the only tool that the Fed really has to bring inflation down is to let interest rates rise to whatever level it takes to cause a recession, which then breaks the back of inflation. Investors believe the central bank will lift interest rates to 2.5% or higher in 2022. This is what you have to do. Slow down the economy in order to take that steam out of the system, the steam of inflation, which eventually can burn you really badly. The big risk is a repeat of one of the worst chapters in American history.
Escalating prices You know, the 1970s were a really hard time. Now, we’re in a new mistake, where inflation has lasted longer and looks like it could risk being around for longer than they had hoped. Can the Fed engineer its soft landing? Or will stagflation return to the US? Tomorrow, the Fed meets again. And it’s rumored they’re going to hike up the interest rates by 50 or even 75 basis points. This is one of the only ways they can combat inflation and restore the value of the dollar.
Since the dollar has been inflated more in the past few years than it has in decades, the Fed is racing against the clock, and it really seems like the problem wouldn’t be as bad as it is if they didn’t wait so long to act against the problems they’ve created. Many analysts fear that we’re on the brink of an economic recession. But the looming question to me is, will we go into stagflation? Investopedia describes stagflation as a witch’s brew of economic adversity, combining poor economic growth, high unemployment, and severe inflation all in one. If you break the word in half, you’ll see it’s the literal combination of stagnation and inflation.
The misery index is a good measure of stagflation because it is the sum of the inflation and unemployment rate. The misery index is currently at 12.14.
That’s up 4% in the past month and almost 41% from last year. Not looking too good. We haven’t seen stagflation in America since the 1970s oil crisis, and if it was to come back in today’s day and age, it would wreak economic havoc. What it really comes down to is how the Fed walks the line this year. If they’re too hawkish and drive us into a recession, stagflation could easily become a reality. If they’re too dovish, the inflation won’t get under control. They have to find that Goldilocks level, that happy middle ground. But if their plan backfires, we could witness the very series of unfortunate events that they’re aiming to avoid. You think the bear market looks bad now? It could always be worse. Hopefully, we’re already near the bottom and this isn’t just the beginning. Let’s pass the mic over to Frankie Candles and see his take on today’s market.
Let’s jump in and do a little market watch here. We got Bitcoin coming in at $37,756. Down about 2% on the day Ethereum coming in at $2,784. Down almost 3% for the day Let’s go ahead and check our top losers. We’ve got Kyber Network down 14% for the day. We’ve gotten Nexo down 7– almost 8% on the day. ApeCoin down 7% on the day, 21% on the week We got IOTA down 7% on the day, 16% on the week. And Maker down 6% on the day and 14% on the week. Guys, we do have a falling wedge pattern forming. These are typically bullish patterns that break to the upside. However, it doesn’t mean it’s definitely going to break up, right? But there is a little bit of that shorter term bullish hopium with that falling wedge pattern. It does have a price target of about $42,000.
Despite the long-term bullish notion from locking down the Staples Center deal for 20 years, Crypto.com just dropped the ball. And their investors are infuriated. In a recent update effective June 1, they’re cutting back on the rewards they’re giving out for using their famous Crypto.com Visa Card. Every tier of their cards has been cut significantly from the original rewards rate. The Ruby Steel Card has been capped at $25 a month in rewards, and the Royal Indigo and Jade Green cards have been capped to $50 a month. If you’re currently in an active six months stake, you’ll continue to earn the agreed upon rewards, but once it’s over, the revised rates will apply. In response to this bit of bad news, CRO has fallen about 18% since the announcement and is currently down around 70% from its November all-time high. Crypto.com CEO Kris Marszalek responded by saying they have to offer a more balanced approach, and given the large scale of the company, they had to cut back to ensure long-term sustainability. The card benefits like Spotify and Netflix reimbursements haven’t changed, but nevertheless, they lost some points with their following.
And hopefully, they can make up for it in the long run. Keep in mind, when we run negative stories, it’s not because I’ve gone full bear. I’m not intentionally trying to scare everyone, but we have to keep it real and report the news. We do this to keep the BitSquad informed so they can make the best decisions possible. And that means covering everything— the good and the bad. Yes, the market is shaky right now, and that’s because there’s a great deal of global economic uncertainty. You’ve been feeling that in the charts since November. This is why it’s important to get a handle on a long-term mindset. Because in the next five to 10 years, you’ll be blown away by what this space is capable of. I’ve seen it myself. But to get there, we’ve got to go through the bad stuff. And the best part is, we’ll get through it together.
To end on a more positive note, Algorand has recently signed a deal making them the official blockchain sponsor of the 2022 FIFA World Cup. ALGO has pumped over 20% since the story broke. The terms of the deal haven’t been disclosed, but exposure alone will be worth every penny. This is really bullish news for them and crypto as a whole. This is just another reason why having a long-term mindset is so important. Keep your eye on ALGO. It’s no stranger to the $2 territory. And it’s currently trading around 66¢. The World Cup kicks off on November 21. Let’s check back at the end of the year to see how much the global exposure affects the price of ALGO.
This article is a transcription of a video made by BitBoy Crypto
Original video: https://youtu.be/zCZctBdeQ9A