The tampering is making markets unstable

[paxmao]

As most of you know, markets go on their own and determine prices by offer and demand... until the FED or the CEB shows up with the money bazooka and then everything moves correlated to the amount of money they decide to print. The situation as of today is no different, as any mention of "tampering", that is, the FED starting to withdraw money from circulation is received with 3% loses in stocks and quite a bit more in bitcoin.

On these times, focus on the long term or you will just get lost in the noise.

[Lucius]

I do not dispute that the moves made by the Fed or the ECB (The European Central Bank) have no effect on financial markets - but currently, the world is concerned about at least two possible military conflicts that are practically hanging in the air. The first is, of course, the one between Russia and Ukraine, where large military forces are constantly accumulating on both sides of the border, and the second refers to the possible conflict between Israel and Iran.

What further aggravates the situation is the fact that the US is making it clear that it will not interfere in the possible conflict between Russia and Ukraine, while also practically giving the green light to Israel for military action against Iran.

Of course, none of this has to happen, but the very possibility of war conflicts of this magnitude forces people to be very careful with their investments. War only benefits arms manufacturers and vultures who exploit people in the war zone.

[paxmao]

...

What further aggravates the situation is the fact that the US is making it clear that it will not interfere in the possible conflict between Russia and Ukraine, while also practically giving the green light to Israel for military action against Iran.

...

I am afraid we are not reading or watching the same news. US has stated that an invasion of Ukraine would have dire economic consequences, which in diplomatic terms is not equivalent at all to a green light. The fact that they are not sending tanks, submarines and the like does not mean that they are willing to have Russia have a go for free.

Regarding sending troops, you have to choose in a range of declarations... no clarity on that either and changes by the day. The Biden admin is unlikely to survive an invasion of Ukraine politically IMHO.

But none of that is the largest issue affecting markets, again, IMHO.

[Husires]

On these times, focus on the long term or you will just get lost in the noise.

we can start taking about economic developments awaiting the results of doctors regarding the Omicron mutator, which can only be answered after following up on the repercussions.
The Federal Reserve, the Bank of England and other banks may adjust or even cancel monetary policies based on health developments.

The interest rate and inflation rate of 13% may have changes that make many people stop using cash and thus may turn to stocks, real estate or Bitcoin.

Investing in Bitcoin will not be in the short term, but rather wait for 5 years and more.

[amishmanish]

Wars and the Fed tampering rates. Gosh, I have a lot to catch up to in terms of world politics as well as economics.

In case of an actual invasion by Russia, I doubt there is anything that the US can or will do. It feels like a tired, old economy led by a tired, old president. I can't believe i am saying that but it seems like all those DC political dramas are indeed true. The Generals raising voices to force President's to show "strength" is a real phenomena when you have been the strongest country in the world for so long.

Imagine a scenario that an actual invasion takes place, US takes its own time to intervene, while China comes in and saves the day with some sort of communist diplomacy with Putin. It would be a classic opportunity form China to truly come into its own in front of the world, something that it has been desperately trying to do through other, childish means.

[avikz]

I do not dispute that the moves made by the Fed or the ECB (The European Central Bank) have no effect on financial markets - but currently, the world is concerned about at least two possible military conflicts that are practically hanging in the air. The first is, of course, the one between Russia and Ukraine, where large military forces are constantly accumulating on both sides of the border, and the second refers to the possible conflict between Israel and Iran.

What further aggravates the situation is the fact that the US is making it clear that it will not interfere in the possible conflict between Russia and Ukraine, while also practically giving the green light to Israel for military action against Iran.

Of course, none of this has to happen, but the very possibility of war conflicts of this magnitude forces people to be very careful with their investments. War only benefits arms manufacturers and vultures who exploit people in the war zone.

I don't believe that the possibility of war would anyway bring down the price of an alternate asset like Bitcoin and ETH. On the contrary, the potential of a war would increase its price because war always affect mainstream economy in a big way.

I believe, the current situation of the crypto market is no different than stock market. Excessive money printing and extra cash rich people are booking their profits out of this inflated market and the impact is seen everywhere. I would say such kind of mild crash is not always bad in the long run. It gives us another opportunity to reposition our investments.

[Upgrade00]

I don't believe that the possibility of war would anyway bring down the price of an alternate asset like Bitcoin and ETH. On the contrary, the potential of a war would increase its price because war always affect mainstream economy in a big way.

Anything that affects mainstream economy is almost certain to affect alternate assets as well, for one it would slow down investments as new investors would be very skeptical of the looming threat and would rather hold their funds in very liquid assets. it could also have a positive effect as people look to hedge their extra funds, and what better asset to do so with than one which is digital (easily moveable) and decentralized.

I however think there would be any reaction to a possibility of war as humans naturally would not react to that, unless there is some sort of action on one or both sides.

[oHnK]

Wasn't this condition predicted long before this happened?  US economic conditions are not doing well with excessive printing of money as a result of Covid 19. If now there is a tightening of the money supply, it is something we should have prepared.  Seeing this, the best investment choice is not in fiat but in assets with stability, meaning that liquid is the same as high risk, so it is better to keep assets in the form of property and low risk assets in order to maintain our initial capital.

[naira]

Agree, the long term can make us more flexible in terms of determining our fate and can think more about reviewing ownership at several stages. In some sources, the FED appears to be saving the economy by confirming that it has printed more notes. But after that, after some time the bad effects will increasingly undermine the world economy. With news that made the FED seem like a hero, it was revealed to immediately increase purchases of corporate bonds.

However, as the impact that we often encounter that printing money has a bad impact on long-term economic stability. But the FED denies what they print in the form of a direct injection of liquidity into the economy. They also said it wasn't an overall excessive rate hike.

[TheUltraElite]

Wars and the Fed tampering rates. Gosh, I have a lot to catch up to in terms of world politics as well as economics.

Hah, same here mate.

Our country is facing its own problems so much so that I was never even aware of such a situation brewing till recently I saw the problems that Ukraine might face if the war happened. I dont like such things and I pray that wars do not happen again.

Also American banking system is not the only system in this world, OP. India's upcoming bitcoin regulation bill is coming in hot and that is going to strike the market pretty hard. I would be ready for some massive movements, depending on how the community takes the bill. Although last time this bill was supposed to be passed, it was never passed actually, but the finance minister is very confident that this year it will get passed.

Keeping my fingers crossed and hoping for the best here.

[stompix]

I am afraid we are not reading or watching the same news. US has stated that an invasion of Ukraine would have dire economic consequences, which in diplomatic terms is not equivalent at all to a green light. The fact that they are not sending tanks, submarines and the like does not mean that they are willing to have Russia have a go for free.

And what would economic sanctions do?
We're talking about a country that has basically no exports other than gas and oil, gas which Europe in their eco madness is totally dependent on since the closing of coal powerplants and nuclear reactors, how do you plan on stepping that? Besides a lot of it goes to China and you think China will give a damn?

Economic sanctions won't scare Russia anymore, there is too little left you can do to harm it economically, we're not talking about a superpower here, it's something the size of Italy which can continue living even under a trade embargo, you cant make life far too worse for like 90% of the population.

Also American banking system is not the only system in this world, OP. India's upcoming bitcoin regulation bill is coming in hot and that is going to strike the market pretty hard.

Comparing the two of them is just funny, one tweet from a senator in the US has more effect than two thousand regulations made by the Indian government, India is not China, nobody gives a damn what they do, positive or negative.

I don't believe that the possibility of war would anyway bring down the price of an alternate asset like Bitcoin and ETH. On the contrary, the potential of a war would increase its price because war always affect mainstream economy in a big way.

Of course, because when poeple lose jobs, lose money, or get killed the first thing they do is buy bitcoins.
 

[Lucius]

I am afraid we are not reading or watching the same news. US has stated that an invasion of Ukraine would have dire economic consequences, which in diplomatic terms is not equivalent at all to a green light. The fact that they are not sending tanks, submarines and the like does not mean that they are willing to have Russia have a go for free.

I'm from the EU, and sometimes the media here have slightly different interpretations of daily political events - and I've seen that many times when I've watched popular US news TV - although the differences aren't dramatic enough to create a completely contradictory way of thinking. After the Biden-Putin virtual meeting, the key thing highlighted in the EU media is that the US will not act militarily in the event that Russia attacks Ukraine, and that is the key thing in the whole story.

Here I completely agree with what @stompix wrote - no sanctions against Russia will harm them too much, which is more than evident from the not-so-distant past. Russia relies heavily on its political and economic ties with China and Iran, which the US cannot influence - and also keeps the EU in a position not to be harsh on them because Russia is their main source of gas and oil.

Regarding sending troops, you have to choose in a range of declarations... no clarity on that either, and changes by the day. The Biden admin is unlikely to survive an invasion of Ukraine politically IMHO.

The US would not put itself in a position of military conflict with a country that cannot be defeated in any way - unless someone thinks that Russia is a lighter opponent than Iraq or Afghanistan, which have proven to be evident military defeats of the US. Ukraine's only chance is to join NATO, but on the other hand, according to Putin, that would be like declaring war on Russia.

But none of that is the largest issue affecting markets, again, IMHO.

I would not agree, I would just quote @stompix

Of course, because when poeple lose jobs, lose money, or get killed the first thing they do is buy bitcoins.