Wall Street expert Ed Yardeni has projected another 35% crash in U.S. stocks, including crypto-linked equities. This comes amid the growing tensions between the U.S and Iran as the war continues to escalate.
Crypto Stocks Face Further Decline as Middle East Tensions Rise
The veteran Wall Street strategist raised the probability of a stock market fall to 35% for the rest of the year. He had initially projected just a 20% decline, but has now shifted his views amid market sentiment.
At the same time, he slashed the odds of a rally driven more by investor enthusiasm than underlying fundamentals to just 5% from 20%. This comes as the U.S.-Iran war continues to worsen with time. Just two days ago, President Trump threatened to keep hitting the Middle East country amid the country’s refusal to retreat.
Yarden’s new projections come as oil prices surge above $100 a barrel. Many experts are now projecting a prolonged conflict in the region that could send energy costs even higher, which could crash crypto stocks further
Source: BloombergAlso, investors pushed back expectations for the next Fed rate cut to September. At the end of February, before the war started, traders had fully priced in a move by July. Some are even betting the Fed may not cut rates at all this year. This comes amid slower economic growth and rising inflation.
The Wall Street and crypto expert has made the right stock market calls in the past concerning crashes. In December, he said Magnificent Seven technology stocks would be underweight relative to the rest of the S&P 500.
Iran Names Supreme Leader Vowing Retaliation on Trump
Early Monday morning, Iran named its new supreme leader, Mojtaba Khamenei, the son of Ali Khamenei, who was killed by the U.S. This signals the government’s desire for continuity as Iran faces more attacks from the United States and Israel nine days into the war.
Many crypto-linked companies have begun to pivot from their strategies amid the tensions. For instance, Bitcoin-miner Core Scientific sold some BTC as it shifted to AI focued structure. This saw its CORZ crypto stock crash at the time.
Meanwhile, Iran’s top security official has said President Donald Trump “must pay the price” for the war. This essentially means things could get worse in the new week. Crypto stocks have seen major price swings as crash fear grows.
Source: https://coingape.com/wall-street-expert-warns-35-crypto-stock-market-crash-amid-u-s-iran-war-tensions/
