Lado Okhotnikov on the Growth of the S&P 500 Index – a Financial Bubble Before the US Elections

February 22nd, 2024 at 1:33 pm UTC · 4 min read

Lado Okhotnikov on the Growth of the S&P 500 Index - a Financial Bubble Before the US Elections

/Meta Force/ – Despite the fact that numerous surveys (e.g. from Bloomberg) show faith in new peaks in American stock indices, there is concern that the world is on the verge of a new financial crisis. A well-known expert Lado Okhotnikov, CEO of Meta Force, believes that this probability is very high.

Lado is known for his criticism of the centralized financial system. He leads a team of talented professionals working in the fields of blockchain, GameFi, augmented reality and online services.

A new article examines the prospects for the dollar and decentralized currencies. An analysis of factors that could cause a new global crisis was carried out. An expert opinion is presented on what impact the adoption of a spot Bitcoin ETF will have on the crypto market.

Slowing US GDP growth and new peaks in the S&P 500 are raising fears that the troubling events of 2008 will soon be repeated. There are opinions that the first signs of the crisis will appear very soon, in a month or two.

At the same time, the SEC’s recent approval of eleven spot Bitcoin ETF applications from major investment houses has generated a wave of optimism. Even Peter Schiff, a well-known skeptic of the first cryptocurrency, said that if the dollar collapses, the value of Bitcoin could increase tenfold.

Lado Okhotnikov is not inclined to perceive such statements as an undoubted sign of an imminent bull run in the crypto market. The expert points out that they are often taken out of context. In addition, there are a number of fundamental factors that do not encourage optimism. CEO of Meta Force says:

“We cannot ignore the huge national debt and geopolitical tensions. These are problems that will not be solved on their own.”

Other reasons that could lead the financial world to collapse are financial “bubbles” in the markets and the economy’s dependence on the Fed’s actions to support bank liquidity. Lado believes that the bankruptcy of systemically important banks is quite possible this year. It could trigger a domino effect because the entire US financial system is highly centralized.

In contrast, decentralized platforms do not tend to collapse due to the failure of one of the elements – there is no so-called “single point of failure”. Therefore, a distributed system based on blockchain is much more sustainable than a centralized economy.

The CEO of Meta Force believes that the threat of a crisis is largely due to the actions of the Fed:

“The Fed’s current policy is to continue pumping liquidity into banks. These guys always solve the problem of depreciation of government bonds caused by an increase in the key rate. All this creates additional risks for the global financial system, precisely because it is rigid and centralized.”

Lado Okhotnikov believes that in conditions of such political and financial turbulence as today, special caution should be exercised. Bank failures due to a lack of liquidity could trigger an unprecedented crisis that could spread to Europe and Asia.

In these difficult times, according to the expert, it is best to keep a cool head and remember to diversify risks. With growing public distrust in the traditional financial system, cryptocurrencies can become an alternative means of preserving capital and making payments. However, their further growth will be determined primarily by fundamental factors, and not by speculative excitement.

To summarize, the author suggests that the rise in shares on the stock market is most likely associated with the intervention of the US Federal Reserve System. With its policy of quantitative easing and injection of liquidity into the financial system, it actually “detaches” the dynamics of markets from the real sector of the economy.

There is reason to believe that such actions by the Federal Reserve are connected with the upcoming presidential elections in the United States – the federal authorities are thus trying to create the appearance of economic well-being in order to ensure the re-election of the current administration. However, such measures only exacerbate imbalances and create risks in the American and global financial systems.

Read more about this in the original article with comments Banks Expect Zeroing In 2024.

About Meta Force

Meta Force is a young company led by Lado Okhotnikov, rapidly developing in the field of virtual reality. The project started in 2021 and already united more than a million enthusiasts whose goal is to create a business in a decentralized ecosystem. It is based on the reliable Polygon blockchain, the open architecture of Uniteverse and Tactile software modules, a distributed registry, a convenient NFT trading platform and a transparent play-to-earn technology.


Dan Michael, Press Center Head

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