In the last month, the concept of RECESSION has been talked about in the world economy. It's a concept I've heard of but haven't thought about much. This is especially true for the United States. This situation, which has occurred in the world's largest economy, also affects the cryptocurrency markets. Not thinking doesn't mean it won't happen. That's why I wanted to share with you what I've learned and my own analysis.
If you're ready, let's begin...
Let's try to understand the concept of recession briefly ...
Recession; It is the stage of moderate contraction in the level of real economic activity, which culminates in a negative stable conjuncture wave, a decline in real gross domestic product due to a decline in a country's economic activities for at least six months, stagnation in economic activities. If the contraction in the economy is not moderate but severe, it is called depression.
Why does a recession occur… ?
Economic growth falling below the population growth rate,
Turning the per capita income into a stagnant and declining state,
increase in unemployment,
The stagnation and recession of economic activities,
Decrease in production activities, as a result of countries entering recession
constitute the main causes.
Recession is a situation in which real Gross Domestic Product (GDP) has traditionally shown negative growth for two or more quarterly periods in a row. A prolonged recession qualifies as an economic collapse.
The policy of public expenditures in the fight against the recession results in the elimination of the inadequacies in private expenditures with public expenditures so that the economy can be balanced at full working level. With such a policy, the decrease in the level of national income will be prevented, the decrease in private sector expenditures will be prevented and the expansion process will be initiated by trying to eliminate the contractionary forces in the economy.
In the fight against recession, it is possible to reduce taxes by keeping public expenditures at the same level. For the effectiveness of the tax reduction policy, the subject of the tax should be broad, so that more people can benefit from tax reductions and increase the disposable income and increase the consumption and investment expenditures of the people.
At this stage, the FED may go for one last rate hike in the coming days, and if it does, it could lead to a recession and then an economic collapse. After this stage, we can see a revival and a bull run in the cryptocurrency markets.
Let's look at another indicator;
United of States 10-year bonds; Interest rates fall when there is demand by investors, and rise when there is no demand.
With the 10-year government bonds reaching their peak, bull seasons have been experienced in the cryptocurrency markets. I draw your attention to the BTC/USDT price chart below.
On the day that the 10-year government bonds peaked, Bitcoin started its bull runs. Is this a coincidence…? I do not think so …
According to my analysis from these charts, the date of the next Taurus run marks 29/11/2022.
The bull run we are going to live may not be long … Therefore, if you have cryptocurrency or cash, you should read my previous article …
My Last Words; The current world economy is deteriorating no matter what anyone does. They are trying to prolong their life with money that is not worth it. For this reason, blockchain technology and cryptocurrencies are the best alternatives. By the way, the analysis I made above; It's a result of what I've seen, heard, studied... My friends, I look forward to your thoughts…
“Keep your eyes on the stars, and your feet on the ground.”
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