The latest economic data out of the US has alarmed analysts as well as the market, casting a shadow over the US recovery. According to the Bureau of Economic Analysis, the US economy could contract by 1.4% in the first quarter of 2022, preliminary data that contrasts sharply with analysts’ previous estimate of 1.1% growth.
If these figures are confirmed, it would represent a significant turn of events, given that in the previous quarter, US GDP increased by 6.9%. This negative performance would be mainly attributable to a drop in consumption in the United States with, in addition, significant reductions in exports and public spending.
In this environment, the role of the Federal Reserve becomes even more delicate, factoring in high inflation and a shrinking economy in the complex maneuver of using interest rates to calm markets, businesses and consumers. . The expected 75 basis point rise in US interest rates could have a significant impact on Bitcoin and major crypto-assets.
The link between cryptocurrencies and macroeconomics
At the moment, the cryptocurrency trend remains heavily influenced by the actions of the US Federal Reserve. It is essential that investors closely monitor the actions of the US Central Bank in order to understand its impact on the cryptocurrency industry and plan effective investment strategies.
It is clear that a less positive than expected performance of the US economy would have a range of repercussions, ranging from less of a US interest rate hike by the Fed to downsizing of the US as a locomotive in the current macroeconomic environment. For cryptocurrencies, this could be an interesting signal, especially since they are considered by many investors as an alternative safe haven to gold as well as the US dollar. Buying of crypto tokens could increase due to the declining performance of the US economy and the specter of recession in Europe due to energy issues with Russia.
This allows crypto business enthusiasts to stay informed of the latest news by choosing the communication channel they prefer, with the assurance of constantly updated information that has been verified and analyzed by industry experts. In this turbulent international scenario, cryptocurrencies remain one of the most watched assets by investors and analysts, and based on developments at the macroeconomic level, they could offer significant investment opportunities in the short and long term. long term.
At this time, cryptocurrency forecasts are conflicting, so it is important to continue to monitor the situation closely to understand how to protect your capital as well as the next steps to take. For this reason, it’s important to use high-quality resources to stay current on information. One of the main reference websites you can check out is Cryptovaluta.it. Cryptovaluta is an online portal created in January 2018, which since May 2019 is included in Google News. In 2021, its reach was 12 million, positioning it as the leading editorial site on cryptocurrencies, NFT and blockchain in Italy. It is important to take into account the macro-movements that could impact cryptocurrencies. Which is one of the strengths of this site, whose team has always paid close attention to macroeconomic analysis to help investors and crypto asset enthusiasts better understand the dynamics of this market. As a crypto investor, only trust portals that guarantee the highest quality of information and engage the millions of users who follow cryptocurrency technologies.