In January 2022, JumpTask entered crypto — one of the fastest-growing industries in the world. What other markets are there? And why should crypto investors care about them?
Everyone’s speaking how the crypto market is volatile and risky. However, all markets share the same characteristic: fluctuations, with asset prices going up and down all the time.
Moreover, asset values increasing in the long-term is a key trend in most markets. Therefore, short-term swings do not matter that much when long time horizons are considered.
JumpTask looked into crypto and other markets to compare the recent trends and dug deeper into JumpToken’s ($JMPT) recent strong price performance.
> $JMPT price increased more than 21% since last month; > All assets classes are volatile: prices historically go up and down;> Asset values tend to go up in the long-term: short-term swings become insignificant;> High inflation and rising interest rates are significant causes of the current market downturn;> Crypto markets tend to provide the highest returns in an economic expansion.
1. Recent Market Performance
It’s no secret that after the extreme rises of 2021, markets are bound to experience some pressure. That is precisely what is happening in crypto and other markets so far in 2022.
The primary reason for this is macroeconomic uncertainty, affecting other markets too.
Specifically, inflation is currently at historic heights, and central banks are raising interest rates to combat it. This, in turn, caused recession fears.
Read more about inflation here:
However, major cryptocurrencies like Ethereum or Bitcoin experienced less drastic fluctuations in the past month.
2. Market Volatility
Very high volatility. Crypto is considered to be one of the most volatile asset classes. The declines are usually steeper, but the potential returns beat all other assets, as seen in 2021.
$JMPT price is holding up strong in the current market sentiment. It is mainly due to the staking upgrades, as increased token demand led to an upward price movement.
Moreover, JumpTask’s member base topped 1M users worldwide, which leads to a higher $JMPT turnover, which supports the price.
According to the graph, after investing at $100 in JMPT at $1.88 a month ago investors held 21.28% more, or $121.28.
An important note is this: if the general market experiences a decline, individual projects with robust tokenomics keep progressing despite short-term market fluctuations.
1. Recent Market Performance
The popular opinion is that gold acts as a hedge against inflation. The argument goes that as fiat currency loses its purchasing power due to price rises, alternative assets (such as gold) become more attractive.
However, current monetary policy (interest rate) changes caused an opposite price movement. As US central bank is raising interest rates, it pushes up the value of the dollar, which becomes a more attractive investment than gold.
2. Market Volatility
Medium volatility. Gold is considered a ‘safe haven,’ meaning that investors hold gold in times of uncertainty. That’s because it has limited supply and historically kept its value stable in the long-run.
However, data shows that the gold market can be as volatile as other markets, except that their most significant declines tend to be lower.
3. Long-Term View
Taking into account the last 30-year period, gold prices tend to increase.
1. Recent Market Performance
The macroeconomic conditions of inflation and high-interest rates affect the stock market too. As interest rates rise, it becomes more expensive for businesses and investors to borrow.
And high inflation means that costs of operation increase, which negatively affect their stocks.
Currently, the major US stock index S&P 500 is down 14% this year.
Therefore, a clear trend is visible: inflation and interest rate rises affect all markets. Volatility is unavoidable when the economic conditions are tough.
2. Market Volatility
High volatility. The general stock market can have high fluctuations. In the short-term, prices can go up and down sharply.
3. Long-Term View
Despite the current dip in stock prices, the 30-year S&P500 chart illustrates the general trend: values of assets generally go up in the long-run.
1. Recent Market Performance
Global real estate is the largest asset class in the world. In the current market conditions, housing prices continue to grow.
For example, one reason for the growth in US house prices is extreme housing shortages — when the supply is limited, the prices tend to increase.
However, real estate prices could face a correction as well. Specifically, as interest rates are rising, mortgage rates are also increasing.
Therefore, borrowing to purchase homes becomes more expensive. This could lead to a drop in demand and lower house prices.
2. Market Volatility
Low to medium volatility. Just like any other class, real estate prices are volatile and changing. Nevertheless, in general, the prices are regarded as stable and gradually growing in the long term.
Despite this, there can be significant events, such as the Global Financial Crisis in 2008, which led to an extreme fall in housing prices.
3. Long-Term View
Taking US house prices as an example, a 30-year chart indicates a clear upward trend in prices.
All markets face fluctuations due to broader economic conditions. Crypto is no different, as it shows weaker performance in 2022 than meteoric rises in 2021. However, this is temporary, as indicated in the analysis above.
$JMPT price dodged any sharp declines this year. That’s because JumpTask has strong fundamentals and targets strategic markets that will support its future growth:
Liking what you hear? Sign up on JumpTask. Invest in $JMPT. Join the revolution.
