Abhishek Tiwari, Head of Product & Strategy - Zelta Tech, Decodes Inflation’s impact on Web3 Industry in Jaipur - The India Saga

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Abhishek Tiwari, Head of Product & Strategy – Zelta Tech, Decodes Inflation’s impact on Web3 Industry in Jaipur

The surged interest rates have shooked the market after the announcement of the inflation rate was pushed down to 8.2…

Abhishek Tiwari, Head of Product & Strategy – Zelta Tech, Decodes Inflation’s impact on Web3 Industry in Jaipur

The surged interest rates have shooked the market after the announcement of the inflation rate was pushed down to 8.2 percent. You have already seen that markets are recovering, but you should not be happy about the same. Abhishek Tiwari discusses the recent inflation drop during a seminar in Jaipur. 

 

Abhishek Tiwari said, “The recession is capturing every country around the globe. The people denying that the recession will not hit their country in 2023 seems somewhat unpractical. When we look at the charts for the cryptocurrencies, every cryptocurrency has recovered a bit from its last position. People in the industry think that the markets are recovering, but that is not true. If anyone of us has seen a positive moment in the crypto market, it is because of three major events that are about to happen in the coming months.”

 

“The markets have turned back. Buyers are trying to push the graph up and maintain the position before the event appears. The events that are coming, such as major companies earning from October 18 to October 28, Fed’s interest rate decision on November 2 at 2 PM, and the third is midterm elections on November 8. These major events will lead to the market crash, leading to an increase in the CPI”, Abhishek Tiwari further added. 

 

Abhishek Tiwari continued, “Seeing the market go down brings the opportunity for entrepreneurs and startups to launch their products and services that can benefit the consumer. There is various news that employees are getting lay-off by companies due to the increase in inflation. But that’s not true. Businesses and markets will get affected by inflation after March 2023. It gives businesses enough time to understand the market conditions and steer towards the safer side without laying off their employees. The fear of inflation is taking startups and small and medium-sized businesses to make such decisions.”

 

The Fed has increased the interest rates five consecutive times. The last three are 0.75%, keeping the inflation persistently high. The central bank is trying to bring inflation down by 2 percent and will continue to work unless the target is achieved. Now, understanding the federal fund rates that indirectly determine the cost of loans, mortgages, auto financing, and credit cards is surged from 3% to 3.25%, with the estimation to surpass 4.5% to 4.75% in 2023. It suggests that it is very likely that the Fed will increase the interest rates by 0.75% in November.

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