As the global economy faces a new wave of negative stuff, the question arises about the stock market future. Many experts talk about a possible redistribution of influence zones and consider cryptocurrency as a replacement for traditional financial instruments.
Is it worth thinking about a new redistribution of assets in conditions of instability? We will look at the correlation between Bitcoin and the S&P 500 and analyze how cryptocurrencies affect the global economy. Let’s pay attention to promising projects and find out how a Forcecoin, the native token of the Meta Force platform, is related to the topic under discussion and what role it can play in the future of the cryptocurrency ecosystem.
Bitcoin really offers huge prospects. The blockchain, on which the token is based, is decentralized and transparent. Only the fact that since its inception the system has been repeatedly attacked but has not yet been hacked speaks of the high reliability of the technology.
One of the main reasons for the security of Bitcoin is its cryptographic protection. The applied SHA-256 encryption algorithm and the Proof-of-Work principle of “evidence-based work” provide a high level of protection which makes it impossible to falsify data.
The bitcoin blockchain is fundamental and for ten years now the token has been drawing a perfectly readable price action that shows dependence on the stock market. Further on you will understand why I think so.
History repeats itself: a correction is inevitable before a bull run
The bitcoin chart shows two peaks of the bull market in 2017 and 2021. Inside the two triangles at the end there are accumulation zones where the price is pressed against the upper border of the resistance area with the subsequent going beyond its limits. These two time intervals are almost identical in their structure which suggests the imminent onset of a new bull run.
Let’s take a closer look at what’s happening now.
Bitcoin chart before the bull movement start
Two squares clearly show the moment when the price exits the accumulation zone. If earlier there had been a strong resistance line here which was broken through successfully, then recently an equally strong resistance has been formed. It is quite possible that we will return to the level retest. And as soon as we test it, it would be logical to expect a rebound followed by an upward movement into the $65,000-80,000 area.
Let’s consider why we are now at an important point. The market functioning is determined by two main factors – fear and greed. When small investors are afraid they sell. It is at this time that large funds use FUD and actively acquire assets at lower prices.
Last winter we already reached the greatest fear when bitcoin fell to $16,000. Then, in a panic, many began to get rid of the asset in order to save their capital at least a little. Now the maximum sentiment of greed should be reached. This is important because the task of the market maker is to attract “hamsters” – investors who must experience the feeling of lost profits. Because of this, it is worth waiting for a local decrease in price in order to collect additional supply before a huge rise to the new all-time highs occurs.
The strength and potential for growth is hidden exactly in today’s zone. We see how the market reacts to the emotions and behavior of investors. Bitcoin’s expected surge to new historical milestones will be the result of peaking greed, attracting new participants and generating additional demand.
Everything as Per Template
Check out this entertaining cheat sheet from Steve Burns which makes it clear what moods the market participants experience at any given moment.
Crowd Control Scenario: Rules That Always Work
It seems fantastic but the stages have already been passed and now we are just at the level where we are again ruled by distrust. This could be seen before bitcoin reached its peak and now when the crypto seems to be on the rise but we still hesitate.
On the chart above, zones are clearly visible, ranging from doubt to panic and depression. So we already got over the depression when we again saw the price of bitcoin at 16 thousand dollars. At that moment many sold their assets and waited for a decline to 8–6 thousand dollars. Now we see how the price has doubled in just 3 months, and many have experienced a fear of missing out (FOMO, lost profit syndrome).
One might think that this is a worldwide conspiracy and it cannot be that our emotions are so smartly controlled. But the chart is clearly in line with the S&P 500 movement. Just look at these coincidences.
S&P 500 и Wall Street Cheat Sheet
We can already say that the stock market is waiting for something similar. And as a result, investors will again come to distrust. It is possible that history will repeat itself now and all those who are participants in the stock market will redirect their capital to crypto.
Correlation Between S&P 500 and Bitcoin
“Personally I expect a correlation before a significant drop. If the S&P 500 is now slightly below its all-time high then bitcoin still needs to double its price. My thoughts are that before the bull run and the big decline in stock market volumes, there will be some leveling of the potential. And when this ratio is leveled then it will be possible to prepare for a bull movement to overcome the bitcoin’s all-time high”, – Lado Okhotnikov counts.
Today we see only that there is a gradual positions accumulation by the large funds. But it happens in such a way as to make it imperceptible for the rest. Again, everything fits into the movement algorithm. And until all scenarios are worked out, there is no point in talking about any significant growth.
It is already clear that projects that will offer society new tools will be promising. One of the directions will be the Metaverse, where a person can not only relax but also earn money
Just the other day the EU said:
“We are on the cusp of moving to Web 4.0. This represents a significant evolution of the internet as we know it now. Today there are developments to combine the physical and virtual worlds. VR/AR technologies play a key role in this transition by enabling digital immersion and interaction.”
Accordingly, in order to have access to the Metaverse you need a digital currency that will be maximally protected from hacker attacks. To date, I know only two blockchains that have not been hacked in history – the Bitcoin network and Forcecoin.
Why the Native Forcecoin Token of the Meta Force Platform Works Outside the Bitcoin Network
Forcecoin runs on the Polygon blockchain. It is a scalable platform built on top of Ethereum that solves the problems of growth, high fees, and slow transaction speeds. The network provides developers and users with the tools to create and interact with decentralized applications (DApps) in a more efficient and accessible infrastructure.
Forcecoin has a Multi-Chain Infrastructure and offers scalability by creating multiple sidechains (parallel independent blockchains) that work mirror-wise with Ethereum. Although sidechains are separate, they can also interact with the main blockchain thanks to bridges. Such multithreading allows processing a large number of transactions and reduces fees, which makes the network more efficient.
It is Polygon that offers several types of sidechains that support various applications. For example, Ethereum-Compatible sidechains make it easy to transfer data from Ethereum to Polygon. POS sidechains use the Proof-of-Stake mechanism for security and scalability, while Rollup sidechains open up Layer 2 technology to increase throughput and reduce gas consumption.
How Does Speed Affect Performance?
Imagine if in the bitcoin network one block is created every 10 minutes, then in Polygon this time is about 2 seconds. This is even faster than in Ethereum where the generation takes about 15 seconds
Polygon has received significant support in India from both private companies and the government. For example, the Indian state government of Maharashtra has announced a partnership with Polygon to develop blockchain-based solutions in the field of agritech and logistics.
“Gadchiroli District (India) becomes the first to issue certificates in the new format. When accessing the blockchain citizens do not have to go through a long process of obtaining permission. Everything will happen within a few seconds”, says Maharashtra spokesman Shubhama Gupta.
With the growing number of participants in the Metaverse the new opportunities are opening up for the creation and development of digital ecosystems, virtual markets, entertainments, education and other areas. Such projects will necessarily include the development and deployment of decentralized applications on the blockchain, the creation of virtual worlds and online communities, the development of innovative forms of communication and collaboration. Therefore, already now it is necessary to look for promising projects for ourselves in order to take the best places in them.