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Shiba Inu, a popular meme-themed cryptocurrency, is experiencing a liquidity crisis due to constrained volume and underwhelming Annual Percentage Yields (APYs), contributing to the scarcity of liquidity. Low Total Value Locked (TVL) indicates a lack of investor trust in the asset’s potential for generating yield and is acting as a deterrent, impeding the inflow of new capital into Shiba Inu and subsequently curbing its price growth. Despite challenges, the cryptocurrency aims to foster a robust and liquid market and regain investor trust to stimulate price growth.
This article originally appeared on www.newsbtc.com
The stock market has been in a volatile state for the past few months, with frequent ups and downs. Despite the stimulus measures and vaccine rollouts, many investors remain apprehensive, which is stifling the stock market from entering a bullish phase. But, what’s exactly holding it back?
First, there’s the ongoing trade war between the US and China, which has resulted in import and export restrictions, tariffs and counter-tariffs, and various other trade barriers. This ongoing dispute has disrupted global trade and negatively impacted international markets. Investors remain wary of investing in companies with global exposure, as long as the trade war continues to rage on.
Secondly, the rising threat of inflation is stifling the stock market from entering a bullish market phase. Inflation results in rising prices and a reduction in the purchasing power of consumers, which eventually impacts businesses and the stock market. Investors tend to shy away from stocks in an inflationary environment, as there’s a likelihood of reduced profitability and a decrease in demand for products.
Moreover, the ongoing Covid-19 pandemic has caused significant disruptions to businesses globally, resulting in job loss, business closures, and a decrease in consumer spending. While vaccines have been developed, the pandemic is still prevalent in certain areas, leading to restrictions and curfews. Investors continue to remain apprehensive until the situation is brought under control and countries can put the pandemic to rest.
Adding to this, the uncertainties surrounding central banks’ policies and rising interest rates are also hurting investor sentiment. Many investors tend to avoid investing in the stock market under such circumstances, as higher interest rates and stricter monetary policies tend to reduce borrowing and spending, which negatively impacts business growth and revenue.
Finally, geopolitical tensions, such as political unrest and civil conflicts, are limiting the stock market’s bullish potential. These tensions can destabilize businesses, negatively affecting investor confidence, and lead to an exodus of foreign investors from the stock market.
In conclusion, several factors limit the potential for the stock market to enter a bullish phase. The ongoing trade war between the US and China, rising inflation, the Covid-19 pandemic, rising interest rates, and political tensions around the world are all negatively impacting investor sentiment. However, with policy interventions and global developments, the stock market could someday enter a bull market phase and attract a resurgence of investor demand.
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