The overall crypto market has lost its stability after the global crypto market cap has lost the $1 trillion mark. However, today the market seems to be slightly recovering after Bitcoin is trading $16K range pushing the market towards green. However, the cryptocurrencies are still far away from their crucial trading level.
While the crypto market tries to find some stability, the recession speculations still hover around the market. On the other hand, one of the most popular crypto analysts michael van de poppe
michael van de poppe
Founder and CEO at eight global
Eight Global is led by Michael van de Poppe, the company’s founder, and CEO. He is a cryptocurrency trader who works at the Amsterdam Stock Exchange and is enthusiastic about the role of blockchain in the current financial system. Also, he is an author at Cointelegraph who covers everything about fintech, blockchain, and bitcoin, providing the latest news, prices, and analysis on the future of money.
In the past, he served as a technical analyst at TradingView, where he was responsible for making technical analyses via the platform of TradingView and distributing these through virtual social media, including Twitter and YouTube. He was the writer of CryptoBenelux, writing articles based on technical analysis and market insights, particularly about Bitcoin.
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in his new video tries to give us a brief picture of the current scenario and how evident is the recession.
Michael Van De Poppe : Recession Soon
Michael van de Poppe informs his 164K Youtube subscribers that how unhappy the citizens around the globe are, especially Europe, with a surging food prices. He gives an example of the Netherlands where there is the largest rate of change ever witnessed in terms of food which has led to decreased grocery shopping. He claims that the FAO or Food Price Index has plunged nearly 15% which has increased pressure on the end consumer and he expects it to grow even more.
Next, Van de Poppe points towards 2021 supply chain crisis and asserts that as per the recent data a few indicators are expected to give out pce number. The PCE number is nothing but the figure which shows how Americans are spending their money altogether on a monthly basis. This is the number which helps the Fed to know the inflation rate. The analyst gives out a chart which suggests that the domestic Freight rates are moving downwards.
The next sector that the analyst talks about is wages which is considered to be one of the weakest in the economy that can stand against increasing inflation. However, as per the chart he claims that the salary rate is dropping and inturn reducing the purchasing power. This scenario might further cause a decline in demand for goods and services along with food.
Lastly, Van de Poppe notes that though goods price is surging along with food price, there aren’t that good numbers made in sales. By this he means that inflation is about to see a massive drop giving rise to deflation. Hence he stresses how important it is to keep an eye on both inflation and deflation rates.
As the strategist concludes, he claims that for the economy to recover it is important for transportation of goods and services to rally. He also says that though inflation rates are decreasing, the Fed is continuing its hawkish stance. This is affecting the companies leading to decreased job openings.