10x Research Warns of Risk of Sharp Correction in Stocks and Crypto Assets

Bittime - Financial research firm, 10x Research, issued a warning on April 16, 2024. They stated that major risk assets such as stocks and cryptocurrencies are on the verge of a potential significant price correction. This correction was mainly triggered by unexpected and sustained inflation.

Factors Driving Correction

High Inflation

10x Research sees higher-than-expected inflation as a key factor that could lead to a correction in risk assets. High inflation can reduce investors' purchasing power and weigh on company revenues.

Interest Rate Policy

Bond market forecasts suggest less likelihood of future interest rate cuts than previously thought. This indicates that the central bank may take a stricter stance to control inflation.

High Treasury Bond Yield

10x Research predicts the yield on 10-year US Treasury bonds will exceed 4.50%. This increase in bond yields can attract investors out of risky assets and switch to investments that are considered safer such as government bonds.

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Impact of Correction

Source: @10x_Research/X

Sharp price corrections in risk assets (Stocks and Crypto) can have a negative impact on investment portfolios. Some potential impacts include:

• Decrease in Investment Value: The value of stocks and cryptocurrencies can drop substantially in a short period of time.
• Increased Market Volatility: Correction periods are usually characterized by high price fluctuations, making it difficult for investors to predict market movements.
• Decline in Investor Confidence: A large correction can cause investors to lose confidence in the market, which can further exacerbate price declines.

Conclusion

The warning from 10x Research highlights the potential risks faced by investors in today's financial markets. High inflation, tight interest rate policies and rising government bond yields can create an unfavorable environment for risk assets. 

Investors need to pay close attention to macroeconomic developments and adjust their investment strategies carefully to mitigate potential risks.

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How to Buy Crypto from Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime .  Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.  

To be able to buy crypto assets on  Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Learn  Complete Guide How to Buy Crypto on Bittime . 

Monitor price chart movements of Bitcoin (BTC) ,  Ethereum (ETH) ,  Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime. 

Also read:

The Impact of War on the Crypto Market

How to Preserve Capital During Inflation Using Crypto

Weekly Crypto Market Outlook (16 April 2024)

DISCLAIMER:  This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.