A market strategist predicts the stock market will drop another 50% from here, and that “there’s going to be no middle class left” (finance). Recent Bitcoin-Related Headlines

A market strategist predicts the stock market will drop another 50% from here, and that there's going to be no middle class left (finance). Recent Bitcoin-Related Headlines

After Fed Chair Jerome Powell’s aggressive remarks at the Jackson Hole Economic Symposium, the value of major stock indexes, Bitcoin cryptocurrencies, and precious metals all plummeted. The crypto market has lost almost $240 billion, and the Crypto Fear and Greed Index is steadily declining toward “severe fear.” Furthermore, Todd ‘Bubba’ Horwitz, chief strategist at, explains that the Federal Reserve hiking rates during a recession will wreak havoc on the remnants of the American middle class.

The Fed Chair’s Hawkish Statements Shock Stocks and Crypto Markets — The Bitcoin market’s strong correlation with the three major indices persists.

Chairman of the Federal Reserve Board Jerome Powell warned that the tough policy the Fed is enforcing will cause “some pain,” after explaining that it will take “some time” to restore the American economy and the current price instability. Wall Street trembled after Powell’s comments in Wyoming, and by Friday’s close, all three major indexes (S&P 500, Dow Jones, and Nasdaq Composite) had dropped by more than 3 percent. The Nasdaq Composite lost 3.94% on Friday, its worst fall since mid-June.

Major stock indices, cryptocurrency, and precious metals all fell sharply in value after Jerome Powell’s hawkish comments at the Jackson Hole Economic Symposium. The cryptocurrency market lost over $240 billion, and the Crypto Fear and Greed Index is inching closer to “severe fear” as a result. The Federal Reserve’s decision to raise interest rates during a recession, as explained by Bubba Trading’s chief strategist Todd ‘Bubba’ Horwitz, will have a devastating effect on the remaining middle class in the United States.

Markets React Negatively to Fed Chair’s Hawkish Comments, Especially Cryptocurrency — There is a persistently robust correlation between Bitcoin markets and the three most widely followed benchmarks.

Federal Reserve chair Jerome Powell recently stated that the central bank’s tough policy would cause “some pain,” after he previously indicated that it will take “some time” to restore the American economy and the current price volatility. After Powell’s comments in Wyoming, investors panicked, sending the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite down by more than 3 percent by Friday’s closing bell. The Nasdaq Composite lost 3.94% on Friday, its worst fall since mid-June.

The Dow Jones Industrial Average lost over 1,000 points, or around 3.03%, while the S&P 500 dropped by 3.37% to end the day at 4,057.66. Gold (Au) and silver (Au) were the top two precious metals in the world, but they both fell at the start of the weekend by 1.13 percent (Au) to 1.79 percent (Au). The value of platinum (Pt) dropped by 2.38% and the value of palladium (Pd) fell by 1.49% against the dollar.

The crypto market lost 6% on Friday and another 4% on Saturday afternoon as a result of the Fed chair’s comments (EST). Bitcoin, the main cryptocurrency, fell below the $20,000 per unit zone during trading on Saturday afternoon (EST), its first appearance in that range since mid-July. The Crypto Fear and Greed Index (CFGI) decreased to 33 on August 19, according to News, after climbing until August 14.

The current CFGI score of 28 (which corresponds to “fear”) is even lower than the 33 that was obtained nine days earlier. Cboe’s Volatility Index (VIX) also increased by 3.78 points after Powell’s ten-minute speech. The VIX volatility index and Nasdaq volatility have both fluctuated recently. A growing body of evidence suggests a strong relationship between the cryptocurrency and bitcoin markets and the equity markets.

In May 2022, experts at Arcane Research noted the similarity between the two markets, writing, “Bitcoin’s correlation with the S&P 500 likewise continues to grind upwards, currently hovering at 0.59, again near to an all-time high.” Both Bitcoin (BTC) and Ethereum (ETH) are fallen over 70% from their respective peaks on November 10, 2021. Almost the course of the last three bear markets, Bitcoin (BTC) has lost over 80% of its value and Ethereum (ETH) has lost 90% of its value versus the US dollar.

An expert on the stock market predicts that equity prices will drop by 50–60%.

Many strategists, analysts, and investors think things will only grow worse in the global financial markets. In a recent interview with Kitco’s David Lin, Todd ‘Bubba’ Horwitz, the chief strategist at, predicted that markets might continue to plummet by another 50%. Horwitz explained his prediction by pointing to the Federal Reserve’s decision to raise interest rates despite widespread fears of an economic downturn.

Further, Horwitz suggested the financial shifts might be linked to the contentious Great Reset. Horwitz told Lin that the Federal Reserve was hiking interest rates despite the economic downturn. We’ve never seen something like this before… All of this activity is part of a larger political strategy to bring about the Great Reset. Additionally, Horwitz emphasized

The Great Reset is a goal of [Biden’s] government. There will be no more people in the middle class.

Horwitz also addressed Powell’s remarks at the Wyoming’s Jackson Hole Symposium. The market strategist remarked, “[Powell’s] statements are those of an idiot,” referencing Powell’s claim that inflation would be temporary at last year’s Symposium.

Horwitz is of the opinion that “[Jerome Powell] is attempting to run away from what is likely to happen,” which is hyperinflation. The price of oil will soon begin to rise dramatically again. Then what do you anticipate will happen with inflation? This year, there will be a severe food scarcity. The strategist went on to predict widespread food riots in a number of nations.

The analyst at predicted that stocks would decline but that there could be good opportunities in commodities. Horwitz predicted a “overall” 50-60% decline in the equity markets. “Anyone who takes a close look at their own money will recognize that these are difficult economic times, and they are exercising caution with their expenditures as a result.”

Orizu Augustine
Orizu Augustine is an experienced crypto writer working for Alltechcraft. Having passion for writing, he covers news articles from blockchain to cryptocurrency and iPhone and Samsung related articles.