Market Crashes! How Would it Affect the First Digital Currency?

• Michael de van Poppe tweeted about the release of his new video.
• The video was a detailed description of the fall of the economy and market.
• He also talked about the impact of the market crash on bitcoin.

Michel van de Poppe, the founder and CEO of Eight Global, announced the release of his new video entitled “Yields Fall Heavily This Week, What Does That Mean for Bitcoin?” on his YouTube channel Crypto Michael. He tweeted that the video is a deeper analysis of issues surrounding the market and economy.

The video began with the narration of the current market collapse that had been threatening traders and investors for the last few weeks. He talked especially about the housing market where there is a depletion in the supply of new homes due to the high prices of housing.

Previously, there were signs of a “brewing U.S housing bubble”, based on several factors other than the high housing price, such as “shifts in disposable income, the cost of credit and access to it, supply disruptions, and rising labor and raw construction materials costs are among the economic reasons for sustained real house-price gains”.

Furthermore, Poppe described about the impact of the increasing strength of US dollars on other currencies including pounds, euro, and yen. Notably, every assets except US dollars had a miserable existence in 2022.

The chief investment officer of Lockwood Advisors at BNY Mellon Pershing, Matt Forester commented that :

We have seen a tremendous rise in the dollar. It’s a juggernaut in the middle of every securities transaction and payment around the globe.

Apparently, the strengthening dollars had both negative and positive impacts on bitcoin. As the finance analyst, Max Keiser tweeted, “bitcoin, like gold, is inversely correlated to the dollar”.

However, the trading volume of bitcoin against British pounds and euro had increased. With the depletion in the price of the pound and euro, people were in a hurry to safeguard their wealth by accumulating bitcoins in exchange for their fiat currencies.