An expert predicted the collapse of 2008..these assets will fall 60%, and digital currencies will “collapse” by Crypto Horizon

© Reuters The expert who predicted the 2008 market crash now predicts a 60% drop and an even bigger crash for the crypto market

Prominent market expert John Houseman, famous for his accurate predictions of past market crashes, warns of an impending Bear Market. After successfully summoning the internet meltdown and the global financial crisis. Haussmann believes that the current conditions are in line with another major downturn in the market.

Valuations and Investor Confidence Raise Concerns Haussmann relies on two important indicators to gauge stock market direction: valuations and investor sentiment. Both factors are currently worrisome, according to his analysis. using his preferred rating scale. Which compares the market value of non-financial stocks to the gross value added. Haussmann contends that the market is more overvalued than it was during the dot-com bubble and financial crisis of 2008.

Investor sentiment also worries the 60-year-old economist. It indicates the weak market breadth and the cautious approach adopted by traders due to the prevailing uncertainty. Unresolved debt ceiling negotiations and the Fed’s uncertainty rate policy contribute to the cautious sentiment. With the continuation of the “no deal” negotiations and the possibility of the United States defaulting. Market participants are cautious and waiting for more clarity before making significant moves.

Similar implications for the cryptocurrency market? Haussmann’s bearish outlook for the stock market may extend to the broader market as well. That sentiment echoes JPMorgan’s global head of equity research, Dubravko Lakos-Bujas. who shares a similar point of view. The major crash in the US stock market may have a ripple effect on cryptocurrencies. Which could cause Bitcoin to break the support level of 25,000 and experience a new monthly low. Some experts even went ahead with the prediction of a coin dropping to $20,000 or less.

Adding to the concern, Mike McGlone expects. Bloomberg strategist, Bitcoin crash coincides with stock market decline. He expects a sharp correction in most cryptocurrencies. With the possibility of bitcoin price reaching a new bear market bottom.

While speaking about the potential price dump on the Crypto podcast, McGlone was quoted as saying, “My base case is going to hit… [لمؤشر S&P 500] to 3000. Bitcoin will go down, I don’t know by how much. You may make a new bottom. Cryptocurrencies will drop sharply.”

Even Elon Musk, the well-known advocate of cryptocurrency and Dogecoin. He recently issued a stark warning, advising against buying cryptocurrencies in the current uncertain climate. In addition, the prominent crypto analyst highlights . Michael van de Poppe highlights the excessively bearish sentiment among retail investors towards Bitcoin and altcoins. which he considers “insane”. He points out that many investors are still stuck in the 2022 mindset. Which saw one of the biggest cryptocurrency upheavals, the downfall of the FTX empire.

The predictions of market expert John Houseman and the repeated concerns of other influential figures are already painting a bleak picture for both US stocks and the cryptocurrency market. If this is true, then a possible bear market. Combined with the prevailing skepticism and cautious sentiment, it can increase the risk of a significant market downturn. Which affects the different financial instruments. Including the powerful bitcoin.

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2023-05-28 13:55:00

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