A Bubble Burst in Many Asset Classes

Expansionary monetary policies, which have been the common theme of recent times in the global economy, are generally in the asset class in the world. creating balloonsConcerns continue to be voiced vigorously.

Strategists from Bank of America, a North Carolina-based multinational banking and financial firm; today cryptocurrencies, palladium, technology stocks and historically risky assets, concurrently you exploded announced. In the news in Bloomberg, Bank of America strategists; It was reported that this pullback in speculative areas came after the investors took a counter position in response to the Fed’s tightening decision.

Troubled days for valuable tech stocks and cryptocurrencies

Signals from the Fed are putting valuable tech stocks pretty sharply. negative somehow affected it. As a result, the Nasdaq Biotech index, which lists biotechnology companies, has decreased by 6.5 percent in the first week of the new year and has been since mid-March 2020. worst five-day performance exhibited.

In addition, with the tightening of US monetary policies, cryptocurrencies also fell. since Sept. 29, down to $40,749.90 lowest level in the last 3 months. According to Bitcoin, the leading cryptocurrency; It fell 40 percent after the record level of $ 69,000 in November. However, Ethereum also fell by 6.8 percent, receding by 35 percent from its highest level in November; Solana also experienced a 7.7 percent decrease.

On the other hand, Jay Hatfield, the Portfolio Manager of Infrastructure Capital Advisors, an important investment advisory company, also said that the Fed’s liquidity cuts have contributed to share risk premiums and interest rates. ‘rise’ will be reflected in the form; He stated that this will have an impact on technology stocks, phenomenon stocks and partially crypto assets.