The world economy is facing significant challenges as a result of economic issues such as the Ukraine war, COVID-19, China-Taiwan tensions, FED rise, and many other issues. As a result, every market is behaving negatively, and every market is bloodshed. The stock market, cryptocurrency market, forex market, gold, silver, crude oil, and other commodities all fell. This is a very concerning situation for long-term investors who have made large investments. Investors are concerned about what will happen in the coming year or whether the market will recover, which is a great question.
CURRENT STATE OF STOCK MARKET WORLDWIDE
The current state of the global stock market and the stock market in my country is bleak, with all shares down more than 10%. There are numerous reasons for this collapse, but one of the major issues in my country that the stock market reacts to is the strength of the dollar against Pakistani rupees. The US announces another 0.75 Bp increase in interest rates, increasing people's desire to invest in the dollar, and the dollar rate rises in the interbank market, weakening Pakistani rupees.
Another reason for the stock market's decline is the current floods in our country. Because of the heavy flood, the entire country has been sealed off, and the cities are cut off from one another. All types of imports and exports have been halted, which will have a direct impact on the stock market. The market has been in a complete bear market for one month, which is very concerning for investors. Inflation is increasing on a daily basis, causing problems for citizens. The stock market's huge volume is now decreasing day by day as people's interests are now broken as the market loses points.
CRYPTO MARKET CONTINUES TO STRUGGLE
The same is true for the cryptocurrency market and other commodities, which are currently in a bear market. The current FED announcement reduces the price of Bitcoin by more than 10%. This year's market crash was particularly severe, turning winning portfolios into net losers. Many investors have given up hope and are considering closing their accounts. However, a look at the BTC halving cycle is surprising. That after every fall, a great bull appears, and people become millionaires during this bull cycle.
INVESTOR WATCHING THE MARKET AND EYES ON BTC
The current price of Bitcoin, which many investors consider to be the lowest, is what they are focusing on. Many people are beginning to take positions right now as they wait for the bull run to begin. However, the world economy is suffering in the interim due to the unfavourable state of the markets. Who knows, though, if BTC manages to keep the support level in place and the bull prevails, this price may reverse and reach new highs.
Investors are aware that the crypto market has experienced higher-than-average volatility this year, and that the market has fallen to its extreme. After reaching an all-time high of $69000, the price drops to $18k, which may be its lowest point. Investors are still looking to the market to avoid risk before beginning to invest. They are more interested in whether Jerome Powell's current monetary policy will alleviate the United States' persistently high inflation.
MARKET EXPECTATION IN 2023
What to expect from the stock market and the cryptocurrency market in the coming years, 2023. If the chairman of the Federal Reserve continues to raise inflation and monitory policy remains against the market, the bear run will continue. And if the regulatory opposition to cryptocurrency is not resolved, we will continue to see more drops. However, if all of the systems begin to stabilise and the FED rates stop rising and instead remain stable, there is hope for a reversal from here.
This is an attempt to inform you about current market news and the global economic situation. I've shared my thoughts and knowledge with you, and I hope it was useful. I hope this post is informative and helpful, and if you find it useful, please reblog it so that it reaches as many people as possible and they can benefit from it. Also, don't forget to upvote, as this will help me financially and grow my account. Please feel free to ask any question, and I will do my best to answer it.
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DISCLAIMER
Please keep in mind that I am not a financial advisor. Never, ever take anything I say as financial advice. Conduct your own research. Before making any investment decisions, consult with a professional investment advisor! My posts are strictly for entertainment purposes!!
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