Jerome Powell Speaks, Bitcoin and Crypto Rally Back | Analysis of the Fed’s maneuvers

Jerome Powell Do not exceed market expectations and this is a toast with a comeback Green color On a large scale, both in the cryptocurrency sector and in other risk markets, especially the sector stock sector Technique.

Good news, but it does not necessarily mean that there is direction reversal Durable, given the problems on the table Powell And from feed it There are many hard-to-resolve issues that in some circles are starting to make fear worse. The reason is especially for those who want investment in World encryptionIt is necessary to try to investigate the matter as much as possible.

Powell doesn’t bother the markets and that’s enough…

The feelings However it has changed. The purchases that could push the crypto world back, too Bitcoin To further restore the price levels that were a few weeks ago. Who wants to follow this? I wake up can do it with eToroGO HERE TO REQUEST UNLIMITED FREE TRIAL OF FINTECH TOOLS included Suggested broker 63+ cipher In the price list, they are all chosen from larger perspectives.

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The facts: Interest rates up 50 basis points, balance sheet lower as of June

Those looking for fireworks will be disappointed, but on the other hand, we must realize that something concrete has been accomplished. high rates 0.50%as was widely expected by the markets and the start of the plan slimming from feed it starting from June. Again exactly in line with what were expectations Wall Street. And this is possible Bitcoin And the rest of the strip avoid Further declines and undoubtedly more attractive price levels regain.

Another factor reported by some optimism In the markets, now drugged with easy money for several months, the possibility of upcoming meetings was almost completely ruled out Federal Open Market Committee It is possible to proceed with an increase greater than 0.50%. The hypothesis that inflation is given by the same acceptance Powell Out of control, many felt it was likely to be on the table.

Everything else is the imagination of the Fed

Everything we heard yesterday is not much different from the narration feed it It has been building for a few months now. Inflation is too high, but everyone took notice a bit even without the intervention of the Federal Reserve’s top commander. The situation in the labor market instead goodEven if you encounter one general economic situation that we can’t agree with Powell. But let’s go in order.

  • Inflation is out of control

It is undoubtedly true – and in these pages we have said it for longer than the Fed. Prices are skyrocketing and continuing to rise, with the peak possibly behind us, but returning to normal at the same time, at least in our opinion. Note, very far away.

  • strong job market

Data coming from USA work It’s good, but anyway it doesn’t allow it, he says PowellGreat naval maneuvers. Social problems can already be exacerbated by inflation. Labor market cooling can have important consequences for a country’s resilience.

  • Comfortable economic data

If we do cherry pickingie choose the data only carefully goodWe might as well agree. However, it is difficult to do this when a file US GDP Going to lose important proportions And when many quarterly best companies The country was not anything unusual. Regardless of what Powell says, the situation is not at all calm, and the plan he has laid out for the next few months, a steady rise in interest rates, may meet with significant resistance.

How is the scenario changing in the crypto world?

So far the market already has discounted Also the following highs that quickly form a consensus 0.50%. It will be necessary to assess the stability of the dollar at levels that are among the highest ever. In the event that this force American dollarThe cryptocurrency and bitcoin market could continue to nibble some positions.

In all likelihood, we will still have gods Lateral movements For some time, the kind that traders can take advantage of with the right tools. We can do it with Capital.comGo here for a free and unlimited demo account – who offers a lot MetaTrader 4 What is the price TradingView for all our needs investment Short-term.

All in a hard-to-read market. But it looks like he’ll never come back, at least in regards to him Bitcoinat the bottoms below I 30 thousand dollars We saw a few months ago. A sign that interest, including financial interest, around this world continues to grow.

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