Market situation: Investors’ fear of a simultaneous rise in inflation and recession in the world

The digital currency market has been fluctuating for some time. In recent days, however, the policies of influential countries in the world economy have largely led to heightened fears and negative market sentiment.

According to Quinn Desk, yesterday the price of bitcoin stabilized near the level of $ 36,000 and the market did not fluctuate much compared to previous days; Bitcoin, meanwhile, faced significant sales pressure on Thursday.

Yesterday, the situation on the Alt Quinn market was almost the same, and on the other hand, the Gala token with a jump of 9% managed to show a different performance from other major currencies on the market. Algorand also recorded a 12% jump during this period.

The reversal of prices has continued in the last week, which shows investor distrust of the current market situation; Especially given that it continues to threaten financial markets economically and on a large scale.

On Thursday, the Bank of England raised interest rates to the highest level in 13 years and at the same time warned of a growing recession. The move by the Bank of England has heightened investors’ fears of a recession (coexistence of inflation and recession in the economy), or in other words, rising inflation and slowing economic growth. The pessimism of the Bank of England about the future of the economy contrasts sharply with the US Federal Reserve, which last Wednesday optimistically tried to reassure investors that the US economy could tolerate higher interest rates.

In general, the transition of the “monetary policy” of the countries from an expansionist to a shrinking model has reduced the desire of investors to make short-term profitable deals; A problem that could be to the detriment of the stock market and digital currencies.

The chart below shows the ratio of the volume of purchase orders to sales on the bitcoin futures market. Its current state is a confirmation of the declining sentiment of traders; Just as it happened with previous price declines.

As shown in the photo, the limited volatility of bitcoin between $ 35,000 and $ 40,000 in the last few months has been accompanied by a steady decline in the volume of sales orders. This means that some buyers refused to enter the market during the stabilization of prices.

Market situation: Investors' fear of a simultaneous rise in inflation and recession in the world
Graph of the volume of orders for purchase and sale on the permanent futures market of bitcoin.

Increasing the value of Atrium compared to Bitcoin

Atrium has lost nearly 6 percent of its value in the past seven days, while bitcoin has fallen 7.5 percent over the same period.

In declining markets, Atrium usually performs better than Bitcoin. This time, however, undirected and continuous movements keep the price of the Atrium / Bitcoin market in a narrow variable range. Breaking the support or resistance of this range may mean increasing or decreasing market risk.

Market situation: Investors' fear of a simultaneous rise in inflation and recession in the world
Atrium vs. Bitcoin price chart; 1 week view of the Atrium / Bitcoin market.

The dominance of bitcoin, or the ratio of the market value of bitcoin to the market value of other digital currencies, has declined slightly over the past few days. This means that altcoins faced less pressure to sell than bitcoins during this period, and it can be concluded that investors have retained some of the risk-taking.

In bullish markets, the price of subcoins is usually lower than that of bitcoins, and this may be due to the fact that investors in these digital currencies are more willing and willing to take risks. For example, the price situation in the Atrium / Bitcoin market, the cessation of support or resistance to the range of fluctuations in the percentage of bitcoin dominance, may be a sign of the beginning of a new era in the digital currency market.

Market situation: Investors' fear of a simultaneous rise in inflation and recession in the world
Diagram of the level of dominance of Bia Quinn in the digital currency market.

The publication Market Situation: Investors’ fear of simultaneous rising inflation and recession in the world appeared for the first time in the digital currency.

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