The global equity markets are a sea of red, with European stocks hovering at one-month lows and the futures tied to the S&P 500 nursing a 0.7% drop.
The Chinese yuan fell to 6.553 against the dollar, hitting the lowest since November, a sign markets are concerned about a slowdown in the world’s second-largest economy.
The renewed coronavirus outbreak in Beijing has triggered fears of a hard lockdown, which will likely exacerbate the global supply chain issues, bolstering the already elevated inflation worldwide.
“It’s more of the same for markets, but with a decidedly bearish sentiment slant for tradefi and crypto,” Illan Solot, a partner at the Tagus Capital Multi-Strategy Fund, said in a Telegram chat.
“We could potentially see BTC drift as low as $33,000 if macro sentiment further weakens,” Matthew Dibb, COO and co-founder of Stack Funds, said.
While near-term prospects look bleak, the worst may be behind us regarding the inflation scare and market pricing for Fed rate hikes, according to Tagus Funds’ Solot.
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