🚨 Strongest Adjustment Day of the Year: The DOW index fell deeply by 700 points, causing the US stock market to sink into the red. This adjustment occurred right after the FED signaled the possibility of reducing interest rates from September, something the market had expected.
💹 Gold and Bitcoin – Different Reactions: While stocks plunged, gold hit a new high at 2487 USD/ounce. On the contrary, Bitcoin and the crypto market also witnessed an adjustment but not as strong as gold.
📊 Deeper Market Understanding: History shows that interest rate cuts often precede economic recessions. This raises the question of whether reducing interest rates is a belated response by the FED in the current economic context.
🔍 A Year in Review: Despite the short-term correction, the DOW, S&P 500, and NASDAQ still recorded impressive growth compared to the previous year. Bitcoin, despite its volatility, is still growing strongly, reflecting confidence in its long-term value as "electronic gold".
🌐 The Role of Gold and Bitcoin in Recession: Gold is considered a safe haven asset, while Bitcoin still has many mixed opinions. However, more and more people see Bitcoin as a store of value, despite its volatility.
Smart Investment:
In times of market volatility, understanding the factors that can influence the market is key to investing intelligently and sustainably. Whether you choose gold or Bitcoin, remember to evaluate thoroughly and do not ignore risk management measures.
