The founder of the Thai cryptocurrency exchange Satang Corporation recommended that the citizens of the country stop investing in digital assets, as the market is now in a downtrend.
Head of Satang Corporation Poramin Insom said in an interview with Bangkok Post reporters that in the near future, the global cryptocurrency market may face high volatility. The main reasons will be the increase in interest rates and the tightening of the monetary policy of states.
In this regard, for the period of a downtrend, Insom recommends that Thai investors significantly limit or suspend investments in digital assets. Insom justifies his assumption by the fact that three key factors influence the direction of the cryptocurrency market: higher interest rates, inflation, and the number of jobs in the United States.
At the same time, all three key factors depress market sentiment. For example, the US Federal Reserve is expected to raise interest rates by 0.5 percentage points at least twice in June and July 2022. Also disappointing are the forecasts for the next 3-4 months on the upcoming reduction in the number of jobs and the impossibility of containing inflationary processes.
In May, according to the decree of the Thai government, transactions with cryptocurrencies and tokens will be exempted from paying value added tax on trading floors registered by the Ministry of Finance of the country.
Source: Bits
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