The Fed Has Good News But Market Sentiment Is Bad

Market situation

The minutes of the Fed’s last meeting were released, causing stocks to have a rally. Oil price fell to 77.8 USD/barrel. Gold rose slightly to $1752 per ounce.

According to minutes from the November meeting, Fed officials are expected to move to smaller rate hikes soon. Some officials expressed concern about the impact the rate hike could have on financial stability and the economy. The market largely expected the Fed to ease the intensity of its policy tightening and the minutes helped confirm that. Markets expect the Fed will likely fix the rate to a 0.5% rate hike in December.

The recent Fed rate hike seems to have seeped into the market. Many fear that if the Fed continues to raise interest rates like this, it will make the economy unstable. Unemployment has climbed higher, many large companies lay off large numbers of employees.

Layoffs from big tech companies like Meta told employees this month they will lay off 13% of their employees, or more than 11,000, because advertising revenue is falling. Snap announced a 20% cut in August, and Twitter just cut about half of its workforce when Elon Musk took over. Elsewhere in Silicon Valley, HP said it plans to lay off 4,000 to 6,000 employees over the next three years.

As for Google, although it has so far avoided widespread job cuts like other tech companies that rely on advertising, internal anxiety is growing. Google employees say internally there is growing concern about possible layoffs. The recent shift in performance ratings coupled with travel budget cuts are contributing to this concern. Google is experiencing its weakest quarter in terms of revenue growth since 2013, apart from a period during the pandemic.

The crypto market also had a slight recovery to around $16,500. Altcoins rose slightly.

However, investor sentiment in the crypto market is still very bad. A share on technical analysis shows that a wedge pattern appears but the opposite is drawn. But even if drawing the price in the right direction as a downward wedge is a bullish pattern, many investors still do not dare to enter a long order. Because the fear of the market falling is still very high. A survey on the website CHK also shows that more than 50% of participants think BTC will continue to fall and make new bottoms.

FTX collapses, SEC chairman criticized

And FTX still has good articles for Sam and Caroline lately. Doubt these articles still receive money from FTX to write like that. Yesterday, many newspapers reported the letter Sam sent to his employees. He apologized for what happened but blamed his “irrational decisions” on “wrong” circumstances. At the same time, the bankruptcy of FTX because investors came to withdraw money in bulk, not to mention fraud or mistakes. However, FTX employees say this is too late. Employees say they’ve never seen the empathetic version of Sam, so they don’t trust the words in the letter.

However, similar articles are shared by Liz Hoffman, who works for the newspaper Semafor. This newspaper is also invested by Sam Bankman-Fried himself. A person named Alistair Milne said that Sam’s share is not correct. Because if FTX really stores enough customer money, then when customers come to withdraw there is no problem. Instead, Sam used the money sent by customers to do other work and replaced it with FTT tokens issued by themselves. It is also possible that FTT is pushed and held in price by FTX using customer funds to buy FTT in the market.

Another person shared that Sam Bankman-Fried had problems when he met before. CME Group CEO Terry Duffy met and spoke with Sam last year. When Duffy sat down with SBF, the former FTX executive said his ultimate goal is to compete with CME Group. Therefore, Mr. Terry Duffy offered to sell CME’s crypto business to Sam for 30 million USD with the requirement that all transactions of FTX customers must go through CME exchange. However, Sam said that CME’s model was not suitable and rejected. So, in the end, Mr. Duffy said that FTX’s model was a “scam” that did not dare to give those transactions to a third company like CME to process.

In addition to CME Group’s Mr. Duffy, Elon Musk has also told the public that when Sam contacted him wanting to invest in Twitter, he saw that he had a problem if he had 3-10 billion to invest in Twitter then the That money is not real money. So he turned down Sam’s offer.

Many people see that Sam has a problem, but SEC Chairman Gary Gensler, despite meeting Sam many times, did not find it. The problem is that Gensler not only failed to spot the crime but he seems set to go with a legislative strategy that will give SBF a legal edge and make him the king of the crypto market. United States death. Currently, Gary Gensler is facing a lot of criticism when the SEC only catches small cases and major events like the collapse of Three Arrow Capital, Celsius and most recently FTX do not prevent or support anything. .

Senator Tom Emmer also criticize Gary Gensler on a speech at Fox News. He also added that, Sam and FTX is an event of FTX, it has nothing to do with BTC and the crypto market, because a bad person does not represent that market. It’s like investing in a gold mining company, if the company has a problem it’s because of that company. But gold remains its essence and is not the problem with gold. Senators also recognize how transparent crypto and blockchain are.

Sharing the same view, Senator Ted Cruz also spoke up. He also added that this event will not necessarily have strict laws on the crypto market. Because crypto also brings jobs and taxes to the state and country. Therefore, he believes that BTC and crypto will still thrive in the United States.