Market Strategist Expects Stock Market to Drop 50% From Here, Says There’s ‘Going to Be No Middle Class Left’ – Finance Bitcoin News

Following Jerome Powell’s hawkish commentary at the annual Jackson Hole Economic Symposium, major stock indexes, cryptocurrencies, and precious metals slid significantly in value. Over $240 billion was erased from the crypto market and the Crypto Fear and Greed Index continues to slide lower, edging toward “extreme fear.” Furthermore, the chief strategist at, Todd ‘Bubba’ Horwitz, explains that the Federal Reserve raising rates during a recession will wreak havoc on what’s left of America’s middle class.

Stocks and Crypto Spooked by Fed Chair’s Hawkish Statements — Bitcoin Markets Continue to Show a Strong Correlation With the 3 Major Benchmarks

After the Federal Reserve chair Jerome Powell explained that fixing the American economy and current price volatility will take “some time,” the central bank chief said, “some pain” would be felt by the Fed’s strict policy. After Powell’s statements in Wyoming, Wall Street shuddered and at the closing bell on Friday all three major benchmarks (S&P 500, Dow Jones, and Nasdaq Composite) were down more than 3%. The biggest loser Friday was Nasdaq, which lost 3.94%. This is its worst loss since June.

The S&P 500 dove by 3.37% closing the day at 4,057.66 points and the Dow Jones Industrial Average shed more than 1,000 points or approximately 3.03%. The world’s top two precious metals, gold (Au) and silver (Au), lost between 1.13% (Au) to 1.79% (Au) to start the weekend. The price of platinum (Pt), which fell by 2.38%, and palladium(Pd) dropped 1.49% against the U.S. dollars.

Cryptocurrency markets did not deal with the Fed chair’s commentary well either as the crypto economy shed 6% on Friday and fell by another 4% on Saturday afternoon (EST). During Saturday’s late afternoon trading sessions (EST), the leading crypto asset bitcoin dropped below the $20K per unit zone for the first time since mid-July. News reported that the Crypto Fear and Greed Index, (CFGI), fell to 33 on August 19. This was after the CFGI rating had moved up from August 14th.

The CFGI score today is even lower than the 33 recorded nine days ago, as the current CFGI score is a 28 or “fear.” Similarly, the Cboe Volatility Index (VIX) saw a 3.78 point rise following Powell’s ten-minute speech. The VIX volatility gauge has seen similar volatility in the Nasdaq. Researchers have found that cryptocurrency and bitcoin markets are more closely linked to equities than ever.

Arcane Research highlighted the correlation back in May 2022 when researchers said: “Bitcoin’s correlation with the S&P 500 also continues to grind upwards, currently sitting at 0.59, also close to an all-time high.” Bitcoin (BTC) is 71% lower than the all-time high (ATH) printed on November 10, 2021, and ethereum (ETH) is down 69.6%. BTC fell more than 80% over its ATH during the past three bear cycles. ETH dropped 90% against the U.S. dollars.

Market Strategists Expect a 50% to 60% Haircut in Equities Markets

Many strategists, analysts, investors, and others believe the global market is only getting worse. The chief strategist at, Todd ‘Bubba’ Horwitz, told Kitco’s David Lin during a recent interview that stock markets could fall another 50% from here. Horwitz said that he was predicting a Fed hike in rates, despite what many consider a recession.

Horwitz also noted that financial movements may have been connected to the Great Reset. ‘[The U.S. central bank is raising rates during a recession,” Horwitz said to Lin. “It’s never been done in history … There is a political agenda behind all of this stuff that’s going on, which is to try to create the Great Reset.” Horwitz further stressed:

[Biden’s]Administration is seeking the Great Reset. There will be no middle class.

Horwitz also talked about Powell’s commentary at the Jackson Hole Symposium in Wyoming. The market strategist said: “[Powell’s] remarks are those of an idiot,” highlighting that at last year’s Symposium Powell stated that inflation was transitory.

“[Jerome Powell] is trying to get away from what’s going to happen, which is going to be hyperinflation,” Horwitz opined. “Wait until the price of oil starts skyrocketing again. Is inflation going to go up? We’re going to have a food shortage this year. We’re going to have food riots in many countries,” the strategist added.

According to, equities will suffer. However, there may still be some opportunistic potential in the commodities markets. “Overall, I expect to see a 50 to 60 percent haircut in these [equities] markets,” Horwitz said. “If anybody looks at their own finances, they can certainly see that it’s recessionary times and they’re watching their spending.”

In this story, tags
bitcoin stock correlation,, CFGI, correlation, Crypto Fear and Greed Index, David Lin, dow jones, Fed Chair, Federal Reserve, gold, Horwitz, Jackson Hole, Jackson Hole Economic Symposium, jerome powell, nasdaq, palladium, platinum, Powell, S&P 500, silver, Todd ‘Bubba’ Horwitz, US Central Bank, VIX volatility gauge

You have to say what you think of the stock market crash and correlation. What do you think about Todd ‘Bubba’ Horwitz’s opinion that equities will see a 50% haircut? Please comment below to let us know your thoughts on this topic.

Jamie Redman

Jamie Redman is the News Lead for News. He also lives in Florida and works as a journalist covering financial technology. Redman joined the cryptocurrency community in 2011 and has been actively involved since then. Since 2011, Redman has been an active member of the cryptocurrency community. Redman has contributed more than 5700 articles to News since September 2015. These articles are about disruptive protocols that are emerging.

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