FED Measures Could Be Negative for Cryptocurrencies and Tech Stocks, Survey Reveals

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FED Measures Could Be Negative for Cryptocurrencies and Tech Stocks, Survey Reveals By Angel Di Matteo @shadowargel

For a good part of those surveyed, the actions implemented by the FED they could have negative effects on the price of shares of technology companies and the main cryptocurrencies. However, analysts point out that this could be positive in the long term.

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  • 47% of those interviewed say that cryptocurrencies will be harmed by actions of the FED.
  • Analysts argue that this could have a beneficial effect.
  • FED made adjustments in 2017, and Bitcoin It has risen more than 300% since then.

A survey conducted by the research firm MLIV Pulse reveals that the shares of technology companies and cryptocurrencies could be the most affected sectors after the adjustments that the company is making US Federal Reserve (FED) at the policy level for the rescue of the US economy.

As such, the survey considered the opinion of some 687 investors of different levels, and it was carried out between May 31 and June 3. This presents a very interesting perspective on what the participants hypothesize for the future of the different financial sectors.

Investors concerned about the crypto sector after measures of the FED

The results of the survey were reported by the news agency Bloomberg, in which 47% of the participants assured precisely that the shares of technology companies and cryptocurrencies were the sectors most vulnerable to the quantitative adjustment that is being implemented by the Fed, while 7% of the participants assured that the effects would be more catastrophic on securities backed by mortgages, although these are perceived as less vulnerable to the policies of the government agency.

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Among other details, the survey also revealed that while a sector of the participants worry about the repercussions on the crypto sector and the shares of technology companies, there is a significant sector that also believes that the bonds of the Treasure could also be affected by these measures.

And another interesting aspect is that those who operated during the financial crisis of 2008 are pessimistic about the current course of the economy, thinking that the repercussions behind the actions of the FED could have a much more negative impact globally.

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Although this seems to be the feeling perceived among investors, for the macroanalyst and presenter of the podcast Forward Guidance, Jack Farley, these measures may not be bad news for cryptocurrencies.

In this regard, Farley commented:

“I don’t think history supports the view that the Fed’s balance sheet reduction is necessarily bad for cryptocurrencies. The last (and only) instance of quantitative tightening by the Federal Reserve began in October 2017, and Bitcoin is up 340% since then to its peak in December 2017.”

Let us bear in mind that although the measures of the FED they indirectly limit the amount of capital that can be used to trade cryptocurrencies, it is precisely the increase in inflation rates that many point to as the main reason to invest in these assets. The regulator may choose to raise bank interest rates further in the coming months, but it remains to be seen whether this would actually have a positive effect on the local economy and international repercussions.

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Let us bear in mind that, although inflation levels currently exceed 8% and are among the highest in the US economy in recent years, the FED has as a goal to reduce them to 2% with these and other measures between 2022 and 2023.


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Font: Blockworks, Bloomberg

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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