Loading ...Because #Bitcoin whales succeeded in pumping Bitcoin close to $70K, it’s much easier for them to unload more worthless Bitcoin at $20K, as those suckers who are buying think they’re getting a bargain. These “bargain” hunters averaging down will eventually be known as bag holders.
Investors are making an even bigger mistake in thinking the #Fed will succeed in bringing #inflation back down to 2% than they did in thinking inflation was transitory. They are also mistaken in assuming that any potential #recession will be mild or that it will cure inflation.
Busts are usually proportionate to the artificial booms that precede them. We had a financial crisis in 2008 and Great #Recession because the boom the #Fed created with 1% interest rates for about two years was so large. Imagine what follows 0% interest rates for nearly 14 years!