Analysts had predicted a recession for years and it should not come as a surprise, according to crypto-focused market research firm Crebaco.
Crebaco claims in a report shared with Cointelegraph that the recession that has taken hold of the markets was anticipated by many analysts over the last several years. The document reads:
“The Global markets have been correcting since [the] last few days. Some blame it on CoronaVirus, some curse on crude oil.”
As the report points out, Bitcoin (BTC) corrected by over 50% in 36 hours while the CAC, DAX, S&P500, Nasdaq, HK Stock Exchange and Nikkei and few other global equity markets collapsed at the same time by about 20% on average. Furthermore, oil-related stocks have also seen a downturn because of the price war on crude oil between Saudi Arabia and Russia.
Year curve analysis had long predicted a recession
According to Crebaco researchers, the U.S. economy is the best indicator as to whether a recession is taking place or not. Per the report, the U.S. yield curve — which consists of the long-term and short-term interest rates given by the treasury — is “an incredibly accurate tool for understanding and predicting recession and US economic conditions.” The document reads: Read More...