The US economic growth is slowing as concerns about commercial real estate (CRE), debt ceiling, and regional banks continue. As a result, after hiking interest rates from near zero to 5% this year, several Fed officials who talked recently have been open to pausing increases. If this happens, it could have positive implications on stocks, and cryptocurrencies like AltSignals (ASI).
Fed likely to pause rate hikes
The US is facing a triple whammy of events. In the real estate industry, the commercial sector is facing one of its worst periods on record. Data shows that the ratio of vacant office spaces has jumped sharply in the past few months.
As a result, most CRE Reits like SL Green, Boston Properties, and Simon Property Group have seen their share prices tumble recently. As debt maturities near, there is a likelihood that more commercial real estate companies will go out of business soon.
The US is also seeing the number of bankruptcies rise as liquidity in the banking sector tighten and as people move their funds to money market funds. Some of the most prominent companies that have filed for bankruptcy are Silicon Valley Bank, Vice Media, and Bed Bath and Beyond among others.
Meanwhile, the debt ceiling issue is continuing as Democrats and Republicans maintain their hardline stance. Republicans have insisted that they will agree to lift the country’s debt limit if the Biden administration commits to substantial spending cuts. Talks between the two sides are expected to resume this week.
Therefore, in light of all this, several Fed officials have supported a move to pause rate hikes in June. In a statement, Neel Kashkari of the Minneapolis Fed said that he was considering supporting foregoing a rate hike in the coming meeting. He said:
“The cost of not getting inflation down to 2% is much higher to Main Street than the cost of getting it down to 2%. So I would rather err on being a little bit more hawkish rather than regretting it and having been too dovish.”
More Fed officials like Raphael Bostic and Richard Clarida have also supported pausing rate hikes. And Jay Powell, the Fed Chair, has said that the bank will likely not hike as high as it had predicted.
Impact on AltSignals
A change in tune by the Federal Reserve will have a positive impact on AltSignals and other cryptocurrencies. For starters, AltSignals is a profitable company that provides trading signals to thousands of people from around the world. The company has been in the industry since 2017.
Now, AltSignals is working to change its business by pivoting to artificial intelligence. It is aiming to embrace the concept of AI, machine learning, and natural language processing (NLP) to process this information.
As part of this transition, the developers are having a token sale that has already raised over $765k in funds. This represents 70.88% of its target of $1.08 million. With each token selling for $0.015, there are chances that this phase of the token sale will end soon.
After the token sale, the developers will launch the token in popular exchanges like Uniswap and MEXC where people can buy and sell it. Judging by the recent performance of new cryptocurrencies like Pepe and Milady Meme Coin, there is a likelihood that ASI token will rise when it goes public.
Historically, cryptocurrencies like BTC and ETH tend to do well when the Fed is a bit dovish. A good example of this is what we saw during the Covid-19 pandemic when the prices of most tokens and other asset jumped. As such, with more Fed officials turning dovish, there is a possibility that cryptocurrencies will rise. Unlike meme coins like Pepe and Milady, AltSignals has a utility behind it since it is already profitable and has thousands of customers as you can see in this Trustpilot page.
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