{"id":49209,"date":"2025-08-27T08:28:06","date_gmt":"2025-08-27T08:28:06","guid":{"rendered":"https:\/\/crypto-globe.com\/?p=49209"},"modified":"2025-08-27T08:31:57","modified_gmt":"2025-08-27T08:31:57","slug":"is-the-stock-market-facing-a-decline-like-in-2022","status":"publish","type":"post","link":"https:\/\/crypto-globe.com\/en\/is-the-stock-market-facing-a-decline-like-in-2022\/","title":{"rendered":"Is the stock market facing a decline like in 2022?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Optimism about the impending rate cuts may be misleading. The Fed is responding to a cooling labor market\u2014and that may mean volatility rather than asset price growth.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The risk of the &#8220;wrong reason&#8221;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Markets traditionally welcome interest rate cuts because cheaper money supports expansion and growth. But this time, monetary policy easing comes at a time when the US <a href=\"https:\/\/www.federalreserve.gov\/\">Fed<\/a> is clearly responding to a weakening labor market and the growing impact of tariffs on inflation. This is a warning sign for investors that the economy is beginning to lose steam and that a period of higher volatility may be approaching.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Furthermore, Shiller&#8217;s CAPE shows that stock valuations remain at extremely high levels. The <a href=\"https:\/\/crypto-globe.com\/en\/aave-seeks-support-after-correction-big-players-buy-despite-market-pressure\/\" target=\"_blank\" rel=\"noopener\" title=\"\">market<\/a> experienced the same situation in 2022, when the S&amp;P 500 index fell by more than a quarter in ten months. If this scenario repeats itself, there is no reason to believe that the market would react differently this time around \u2013 a correction could come in the coming months.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Bitcoin tests support<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/trader-magazine.com\/news\/us-bitcoin-spot-etfs-have-had-a-successful-year-helping-bitcoin-to-grow\/\" target=\"_blank\" rel=\"noopener\" title=\"\">Bitcoin<\/a> broke down after several weeks of consolidation and headed for its first significant support level at $107,000. This level will be key to maintaining the growth trend, as the price may rebound upwards from it. However, if support cannot be maintained, a further decline may follow.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other strong support levels are at $96,000 and $90,000. Although these values seem distant, in reality, it is only a loss of around 27% from this year&#8217;s high. This in itself may not mean the end of the upward <a href=\"https:\/\/crypto-globe.com\/en\/bitcoin-on-the-verge-of-a-new-correction-growth-trend-now-in-its-seventh-week\/\" target=\"_blank\" rel=\"noopener\" title=\"\">trend<\/a>, but it will increase uncertainty and pressure on investors. It is therefore essential for bulls to maintain close support and avoid further weakening.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Optimism about the impending rate cuts may be misleading. The Fed is responding to a cooling labor market\u2014and that may mean volatility rather than asset price growth. The risk of the &#8220;wrong reason&#8221; Markets traditionally welcome interest rate cuts because cheaper money supports expansion and growth. But this time, monetary policy easing comes at a [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":49202,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"yasr_overall_rating":0,"yasr_post_is_review":"","yasr_auto_insert_disabled":"","yasr_review_type":"","footnotes":""},"categories":[162],"tags":[317,99,316],"class_list":["post-49209","post","type-post","status-publish","format-standard","has-post-thumbnail","category-crypto","tag-akcie-5","tag-bitcoin-en","tag-fed-2"],"aioseo_notices":[],"yasr_visitor_votes":{"stars_attributes":{"read_only":false,"span_bottom":false},"number_of_votes":0,"sum_votes":0},"aioseo_meta":{"seo_title":"Is the stock market facing a decline #separator_sa #site_title","meta_description":"Optimism about the impending rate cuts may be misleading. The Fed is responding to a cooling labor market\u2014and that may mean volatility rather than asset price.","focus_keyword":""},"_links":{"self":[{"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/posts\/49209","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/comments?post=49209"}],"version-history":[{"count":1,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/posts\/49209\/revisions"}],"predecessor-version":[{"id":49212,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/posts\/49209\/revisions\/49212"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/media\/49202"}],"wp:attachment":[{"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/media?parent=49209"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/categories?post=49209"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-globe.com\/en\/wp-json\/wp\/v2\/tags?post=49209"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}