Max Keiser, along with Anthony Pompliano, explored what the current market downturn is like compared to the previous ones on the Best Business Show
Let’s look at Max’s analysis of the bear market of 2022:
What Transpired During Previous Market Drawdowns?
Lack of liquidity: He opened the conversation with Anthony by discussing the bear market’s past atrocities. He claimed that the previous causes were predictable because the well-known exchange lacked liquidity and was too volatile to be used for trade. However, the issue of regulatory oversight in exchanges like Bitmax and others was also a problem.
Additionally, he noted the long-standing issue of wash trading in Bitcoin. Having said that, he reportedly stated that only approximately 50 million in daily volume constituted actual Bitcoin and the rest was wash-trading when Saylor first started buying Bitcoin.
According to him, Nasdaq has been guilty of wash trade for years, which they did to manipulate the pricing. Due to a lack of volume, you would see an 80% drawdown when sentiment changed.
A different perspective of the current bear market of 2022
- First, it is exceedingly impossible to make a price prediction other than just that one.
- Second, it is up to the investors if they want to hold it for three and a half or four years. According to him, you will be profitable if you have a short time horizon, such as three and a half or four years.
- Third, the volume has legitimated itself, the demand has legitimated itself, and the markets have legitimated themselves over the past. Let’s call it the ‘Michael Saylor era.’
He mentioned the global factor as one of the major causes of the current bear market. Starting in February with the Russia-Ukraine conflict, there was an end of a 40-year bull market and bonds and financialization at the beginning of a secular inflationary move in global markets that will be tied to commodities.
Thus, on the macro level, this is the first time that Bitcoin has encountered a rising interest rate environment, which results in a significant shift in the flow of capital.
Since commodities were not a significant issue for 40 years, he listed them as one of the other causes of the present bad market. As more people become aware of how the financialized world is disintegrating, Bitcoin will ultimately thrive in that atmosphere. He frequently emphasizes that investing in bitcoin is risk-free.
It’s risk-off, not risk-on. Your safe-haven funds should be placed here.
The growth is going to occur there. That is where the adoption is taking place. So those are the modifications—some are different, some are comparable.
Max Analysis of Hawkish Interest Rates:
He criticizes the Fed’s stance that a soft landing will be made, inflation will be reduced, the population will be calmed down, and the world will become a better place. The analyst claims that, in light of the current situation, that is an illusion. Due to the escalating inflation that would result from this, which will eventually trigger a recession, the Fed will never be able to control it.
The Bottom Line
He concluded by saying that the present market scenario is way different than the past as the current price-determining factor for prices is shifted from the New York Fed or from the Fed to the east, to Russia.
That’s just a fact because we don’t have the ability to control these markets and prices anymore because people are dumping the dollar.
The dollar is not going to be the world reserve currency and the guys with the actual energy are in control.