Dakuce Exchange Crypto Cafe — 01/2018
FED RAISES INTEREST RATES
After the financial crisis in 2008, FED cut interest rates to 0% to stimulate economic growth. Since bank deposits weren’t benefitial anymore, investors changed to stocks, real estate… That made US stock market increase.
Recognizing the economy was recovered, FED released a roadmap to raise USD interest rates. When interest rates became attractive, money began to withdraw from stock market, resulting in stock prices dropping and USD prices rising.
In early July, FED raised interest rates and the US-China trade war began. Investors thought that there would be economic fluctuations, so they rushed off the stock market to buy Gold, which led to the rise in Gold prices.
GOLD 2.0 RISES?
Bitcoin (BTC) is talked to be Gold 2.0. And according to the current situation, investors, especially Generation X (Gen X) will run into BTC when fleeing from the stock market.
However, everytime the BTC has signs of price increase as well as the stock market falls, a crypto exchange will be hacked, first Bithump then Bancor, which stop the increasing of BTC.
CONSPIRACY THEORY
Conspiracy theorists think that Shark Investors are withdrawing capital from the US stock market and using the money to buy BTC. But if they rush out of the stock market, the price will be going down fastly so they are forced to withdraw gradually. And since they don’t want the price of BTC to rise too high before they withdraw enough capital, they need some ‘technical’ intervention so that BTC price will not increase.
If the conspiracy theory is correct, then when the decreasing of the US stock market slows down, that will be the time for BTC and crypto market to increase.
But at that time, it may be too late for investors who are scared at the moment.
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