The post Is History Repeating Itself with a Dot Com-Style Crash? Analyst Issues Warning! appeared first on Coinpedia Fintech News
The dot-com bubble, which affected tech stock prices in the late 1990s and early 2000s, was caused by media coverage of the burgeoning Internet business and investors’ expectations of dot-com profits. When interest rates soared, the dot-com crash was directly caused.
The Federal Reserve raised the fed funds rate, which affects most other interest rates, and this drove investors away from risky assets like internet startup stocks and into bonds. The second factor was the March 2000 Japanese recession, which caused a global selloff that drove more money out of risky markets and into bonds.
Now, popular crypto expert Benjamin Cowen is warning traders about Bitcoin’s first weekly death cross. When a short-term moving average falls below a long-term one, a death cross occurs. Cowen explains that BTC’s 50-week SMA is $24,678, and its 200-week SMA is $24,999
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