The Fed Will Raise Interest Rates Again | Signs of a Bottom Appearing

 68 total views


2022-11-24 20:36:45

Market situation

Yesterday, the market had a slight recovery after many dropping sessions. US stocks rose in all three indexes. However, the stock futures contract still fell slightly. Oil fell slightly to 81 USD/barrel. Gold price increased to 1728 USD/ounce.

BTC and crypto also grew along with stocks to $19,200. The altcoins also increased slightly and the crypto market capitalization was also around the $1 trillion mark.

Fed Vice Chairman, Lael Brainard spoke and continued to confirm the Fed’s continued interest rate hike. She said the Fed will advance the fight against inflation, which she believes is hurting low-income Americans the most. That would mean raising rates more and keeping them higher for longer. Although there is no specific roadmap, Ms. Brainard said it could be the next few months.

Investors and the market are also prepared for the fact that the Fed will continue to raise interest rates. The Fed Watch contract also shows that 82% of investors think the Fed will increase by 0.75%. If the Fed increases less than this number, it will be good news for the market.

Fed Governor Michael Barr, whose title of vice chairman of oversight gives him broad powers over the nation’s banks, delivered his first policy speech since it was confirmed by the Senate.

He has driven action on stablecoins, preparedness for climate change and also the safety and fairness of the financial industry. Michael Barr is currently running a financial system that is generally thought to be well-capitalized but has been plagued by market disruptions that required Fed intervention in the early days of the Covid crisis. The rise of cryptocurrencies and stablecoins also poses challenges for the Fed. He called for increased scrutiny of the cryptocurrency industry and the risks it poses.

One indicator that continues to rise is DXY, which shows that the USD is getting stronger against other currencies such as Euro, British pound, Japanese Yen, etc. When the Fed raises interest rates, assets such as government bonds. more and more attractive. Therefore, many people want to change to holding USD to buy assets such as US bonds. The Fed is also determined to raise interest rates more strongly than other countries, the tightening of the currency also makes the USD stronger.

Europe continued to be more tense after Russia stopped supplying them with gas. Electricity and fuel prices have skyrocketed as Russia cuts back on the amount of gas it sends to Europe. In response to this, the European Commission proposed a cap on the price of Russian gas, along with measures including EU-mandated electricity use cuts and a ceiling on the sales of non-electric generators. use gas.

Stop supplying gas to Europe, Russia has sold it to China. The two countries also signed an agreement covering the use of Russian rubles and Chinese yuan to pay for the purchase. China buys gas cheaper and sells it to Europe. It can be seen that in the war between Russia and Ukraine, the most affected countries are the countries involved as well as Europe.

Bottom signs appear gradually

El Salvador was the first country in the world to accept BTC as a means of payment. Although facing a lot of pressure from countries or large organizations in the world as well as internally, they still continue to be consistent with this path. This is a success for this small country. This will also influence other countries with similar intentions.

The acceptance of BTC payments through the Lightning Network 2nd tier also contributed to the new record in the number of BTC traded on the second tier platform. The network is getting more and more solid and processing payments of larger and larger amounts.

Over the past day, the BTC profit rate has dropped below 50% which is a sign that the bottom has appeared. Additionally, the Bitcoin Realized HODL Ratio has also entered the green zone.

Similarly, the Bitcoin Puell Multiple index is also showing signs of entering the green zone, which is a good area to accumulate BTC.

These are signs for our reference as a good price area to accumulate BTC. At the same time, we need to follow our investment principles and avoid all-in capital into the market.

Other information:

  • The deputy director of the IMF Money and Capital Markets Division, Aditya Narain, and the assistant director, Marina Moretti, have suggested that a global regulatory framework for crypto assets is needed to protect users, create order in the market and encourage innovation. This is why the IMF is calling for a coordinated global response (1) that can fill the regulatory gaps that arise from inherent cross-sector and cross-border issuance and ensure a level playing field. Equality; (2) consistent, so it aligns with mainstream regulatory approaches across the entire operation and risk spectrum; and (3) comprehensive, so it covers all actors and all aspects of the cryptocurrency ecosystem

  • Cryptocurrency lender Voyager Digital will auction off the remainder of its assets on September 13 as it enters Chapter 11 bankruptcy proceedings. The auction will take place in the New York offices of the banks. investment banker of Voyager, Moelis & Company.

  • Video game company GameStop (GME) is partnering with Sam Bankman-Fried crypto exchange FTX.US to foster interaction between the gaming and crypto communities. The two companies will promote e-commerce and marketing initiatives. GameStop is also being labeled a “preferred” retail partner of FTX in the US.

► Join Exchanges with exclusive deals with CHK

#Fed #Raise #Interest #Rates #Signs #Bottom #Appearing

Leave a Reply

Your email address will not be published. Required fields are marked *