Market Strategist Expects Stock Market to Drop 50% From Here, Says There’s ‘Going to Be No Middle Class Left’ – Finance Bitcoin News

Following Jerome Powell’s hawkish commentary at the annual Jackson Hole Economic Symposium, major stock indexes, cryptocurrencies, and precious metals slid significantly in value. Over $240 billion was erased from the crypto market and the Crypto Fear and Greed Index continues to slide lower, edging toward “extreme fear.” Furthermore, the chief strategist at bubbatrading.com, Todd ‘Bubba’ Horwitz, explains that the Federal Reserve raising rates during a recession will wreak havoc on what’s left of America’s middle class.

Stocks and Crypto Spooked by Fed Chair’s Hawkish Statements — Bitcoin Markets Continue to Show a Strong Correlation With the 3 Major Benchmarks

After the Federal Reserve chair Jerome Powell explained that fixing the American economy and current price volatility will take “some time,” the central bank chief said, “some pain” would be felt by the Fed’s strict policy. After Powell’s statements in Wyoming, Wall Street shuddered and at the closing bell on Friday all three major benchmarks (S&P 500, Dow Jones, and Nasdaq Composite) were down more than 3%. Nasdaq was the biggest loser on Friday shedding 3.94% as it printed the worst losses since mid-June.

Markets more than a little spooked, with major indexes shedding more than 3%; Tech took it on chin with a 4.3% decline; Comm Serv & Cons Discr not far behind … MTD gains now being chipped away for broad indexes as only Russell 2000 and Russell 2000 Growth are up pic.twitter.com/W10NpeIwi3

— Liz Ann Sonders (@LizAnnSonders) August 26, 2022

The S&P 500 dove by 3.37% closing the day at 4,057.66 points and the Dow Jones Industrial Average shed more than 1,000 points or approximately 3.03%. The world’s top two precious metals, gold (Au) and silver (Au), lost between 1.13% (Au) to 1.79% (Au) to start the weekend. Platinum (Pt) slid by 2.38% and palladium (Pd) dipped 1.49% lower against the U.S. dollar.

Cryptocurrency markets did not deal with the Fed chair’s commentary well either as the crypto economy shed 6% on Friday and fell by another 4% on Saturday afternoon (EST). During Saturday’s late afternoon trading sessions (EST), the leading crypto asset bitcoin dropped below the $20K per unit zone for the first time since mid-July. On August 19, Bitcoin.com News reported on the Crypto Fear and Greed Index (CFGI) falling to a score of 33 after the CFGI rating moved higher up until August 14.

The CFGI score today is even lower than the 33 recorded nine…