The post Why Crypto & Stocks Are Crashing: Experts Reveal Key Insights appeared first on Coinpedia Fintech News
In a recent podcast interview, Phil Rosen, Co-Founder of Opening Bell Daily, and Anthony Pompliano, CEO of Professional Capital Management, talked about the recent drop in stocks and Bitcoin. They also covered economic policies under Trump and Kamala Harris, the proposed capital gains tax hike, and how potential interest rate cuts might affect asset prices.
What does the future look like? Let’s explore.
Bitcoin’s Current Status
Bitcoin is currently around $56,000, down 12% over the last six months, with a 30% drop in daily active addresses. Despite this decline, Pompliano notes that Bitcoin investors are usually long-term holders, treating it as a serious financial asset rather than a regular purchase.
Rosen discussed possible factors that could influence Bitcoin’s price in the next six to twelve months. Although there’s no clear sign of a major price surge, he mentioned that events like interest rate cuts or large purchases by Sovereign Wealth Funds could boost Bitcoin’s price. Still, he cautions that a full-blown bull market might not be near and expects Bitcoin’s volatility to decrease, making it less risky compared to the S&P 500.
Stocks: What Does History Tell Us?
September has historically been a tough month for stocks, with the S&P 500 losing an average of 7% over the past 75 years. However, investor confidence remains strong, with record levels of investment in stocks and the S&P 500 reaching nearly 40 record highs this year.
Rosen highlights two important points.
First, long-term investing in stocks has been successful for many, as consistent investment can lead to wealth accumulation over time.
Second, while there are worries about overexposure and a potential market crash, focusing on long-term investment strategies is more important than reacting to short-term market changes.
The Impact of Dollar Devaluation
A key part of Rosen’s argument is the inevitable devaluation of the U.S. dollar. As the dollar loses value, assets like real estate and stocks generally increase in price. This explains why real estate investors often see returns, even if the property’s true value hasn’t changed. As the dollar’s purchasing power drops, future buyers will need to pay more for the same assets.
Long-Term Investment Strategy: What to Expect
Rosen advises staying invested in the long term. He believes that while huge price jumps are unlikely, steady growth is expected due to the dollar’s devaluation. Despite fears of a market crash, Rosen emphasizes that long-term, consistent investing is key, with the S&P 500 continuing to be a strong choice for building wealth over time.
Also Read: Bitcoin Price Prediction: A Major Drop or a Massive Reversal? Here’s What Experts Say!
