Renowned financial market expert and portfolio manager Michael Gayed said that as long as Dogecoin, as an example of a worthless asset in his view, has a market capitalization of $7 billion, the collapse of financial markets is far from over.
The current market cap for Dogecoin is still over $7 billion.— Michael A. Gayed, CFA (@leadlagreport) September 22, 2022
This shit ain't over.
Referring to the statements of the expert on the same day, an opinion can be understood, according to which the bearish trend on the stock market, and thus also on the closely correlated crypto market, will end when the collapse of the real estate market is over.
That said, the situation for U.S. housing is extremely ambiguous, with the affordability of existing homes falling at the same time as sales of existing homes have historically fallen.
Crypto market tied to U.S. economy - unfortunately
Thus, in Gayed's view, the markets are far from over, and there is no immediate solution. The expert's opinion refers to the well-known principle that if people as far away from investments as possible are interested in them, smart investors should leave the market.
This is indirectly confirmed by yesterday's Fed rate meeting. Despite the expected decision to raise the indicator by 0.75%, the crypto market reacted with a sharp drop. However, the main focus was on the Fed chief's speech, in which he announced a rate hike to a restrictive level, above neutral, reflecting the regulator's tough and extremely hawkish view on measures to curb unyielding inflation.
As long as Dogecoin is worth $7 billion in the near-recessionary state of the economy, do not expect positivity or a return to the bull market.