фото показано с : blokt.com

The stock markets are going through carnage on both sides of the Atlantic. Tensions between the US and China and concerns over a full-blown trade war between them are making central banks take precautionary measures. Now equities do not have a stimulus to keep pushing prices higher. The impact is a slump in global stock prices. And the cryptocurrency sector is likewise affected because of these issues. The top 10 cryptos were in the red, along with the S&P and Dow Jones, on Thursday, Oct. 11.

President Donald Trump is usually quick to remark on internal matters and foreign powers. The US Federal Reserve has seen the economy growing steadily with some signs of inflation. This led to the country’s central bank increasing interest rates. Some more hikes are expected in the upcoming quarters to keep the economy in check. As markets declined on the news, Trump quickly blamed the Fed, calling the rate hike a “mistake.” He said, “It’s so tight, I think the Fed has gone crazy,” adding that the institution is “going loco.”

Global stock markets followed the Dow Jones on Thursday as both emerging, and developed economies faced the fears of an imminent trade war between the US and China. Stock markets rebounded in the US and Europe on Friday, October 12.

The reason behind the crypto slump is unclear. According to some experts, the decline happened because of investors’ general risk aversion. They would not like to invest in something as volatile as digital currencies in testing economic times. Some analysts also suggest that the price slump happened because the price of Bitcoin has fallen below the total cost of electricity to mine it. This led to a 4% decline in Bitcoin, while Ethereum and XRP lowered their prices by more than 10%. Prices have recovered somewhat since the decline.

A continued risk in equities and cryptocurrencies is expected next week due to a lack of liquidity for cryptocurrencies and the growing tensions between the US and China. According to Kit Juckes, global fixed-income strategist at Societe Generale, Trump could label China a currency manipulator in the upcoming week, which could create more troubles in the market. Juckes commented that the US has been impervious to indications that the world economy is beginning to slow, and the broader markets believe that the US Fed “will soften its tone” if the sell-off continues.

Cryptocurrencies Take a Beating as Stocks Slump With Rising US–China Tensions was originally found on [blokt] - Blockchain, Bitcoin & Cryptocurrency News.

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