RE: RE: Don't confuse lower with lowest!
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RE: Don't confuse lower with lowest!

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4y

No, and let me give you a reason.

‘Money/credit’ and asset prices are directly correlated. When there's more money/credit, then there is more money/credit for people to buy assets with. And when people buy assets, those assets increase in price.

When there is less money and credit, the opposite happens, people sell assets for money, and assets decrease in price.

I want the money/credit scales tipped in my favor…so there is a higher probability of profitability. And when there's more money in the system, I make long positions. When there's less money in the system, I make short positions.

It's kind of like sailing a boat with a current. I can probably fight the current, but it's much harder to get where I need to go when I do that. It's better that I go with the current.

Money is like a current. And the direction that money is going is that it’s getting more expensive (credit)...therefore it's going in the opposite direction…people want more money, and less assets. The Federal Reserve is raising the cost of credit, and other central banks are thinking about it.

When something is more expensive, people use less of it. So that's less money buying financial assets like crypto. And if people aren't buying crypto, they're either holding it or selling it. Therefore the price of crypto will decrease.

Plus, in a contracting credit environment, unemployment rises and people's incomes also go down, therefore they raise cash by selling financial assets (like crypto) to pay off debt. Which puts additional selling pressure on crypto.

In the United States, the Federal Reserve is going to continue raising interest rates to bring down inflation. And it will probably be 12 to 18 months before they figure out that it's actually working.

So in the meantime, there will be considerable selling pressure, until the Federal Reserve decides inflation is at its 2% target, and interest rates can level off or start to come down again.

Then that's when you buy :)

@fijimermaid: No, and let me | Ecency