According to forex trader and crypto analyst Alessio Rastani, stock market movements over the next few weeks will be crucial in determining whether we head for a short-term or a long-term recession.
During the October-December 2022 period, the analyst expects the S&P to rally. “If that bounces or the rally fails and falls back, then we very likely enter a long-term recession and something very similar to 2008,” Rastani said in a recent Cointelegraph interview.
According to the analyst, such a recession could last until 2024 and inevitably have a negative impact on Bitcoin (BTC) price.
Discussing the recent sterling crisis, Rastani opined that its main cause was the rally in the US dollar, which is putting pressure on most other fiat currencies, including the yen and the euro. However, from Rastani’s perspective, the US dollar is nearing the top.
“Once we see a clean break, a sustained break of the 111.5 and 110 levels in the dollar index, then I think the top is in for the dollar. And then I expect a multi-month pullback in the dollar back to 104-100 on the dollar index,” he explained.
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