It’s 110f Outside, but the Fed Won’t Turn on the AC…

TL;DR

A couple of months again, the market was overjoyed to study that charges weren’t going to be hiked any additional. However now, the market is frightened that charges aren’t about to be lowered. Identical message, completely different response.

More cash tied up in servicing loans = much less cash to speculate. One hope was that it’d be discovered within the mere potential of lowered rates of interest, someday inside the subsequent 6-12 months – however the Fed is staying painfully tight lipped.

Ethical of the story: if the ETF information does not progress, we is likely to be ready some time for the subsequent crypto market worth pump.

Full Story

Notion is a humorous factor.

If it was 110f levels (43c) exterior and we instructed you:

“Excellent news, it’s not going to get any hotter than this!”

You may really feel aid…but when we instructed you:

“It’s not about to get any cooler – in actual fact, the temperature goes to remain at this stage for a very good whereas but.”

It’d in all probability solely add to your stress ranges.

Bizarre factor is: we’d basically be delivering the identical message.

There’s an identical trick of notion enjoying out with the market’s response to Federal Reserve rate of interest hikes.

A couple of months again, the market was overjoyed to study that charges weren’t going to be hiked any additional. However now, the market is frightened that charges aren’t about to be lowered.

Identical message, completely different response.

Okay, so what does this must do with crypto?

Effectively, all markets want new cash injected into them to ensure that costs to go up.

Rates of interest are the best they’ve been in over a decade proper now, which implies the investing public is spending extra on mortgage repayments than it has in loooong whereas.

More cash tied up in servicing loans = much less cash to speculate.

The rumors of a spot Bitcoin ETF (aka a option to commerce BTC on the inventory market) pushed Bitcoin’s market cap means up over the previous week…

However as these rumors start to stagnate, the market is now in search of new sources of data that suggest ‘a contemporary injection of money is imminent!’.

One hope was that it’d be discovered within the mere potential of lowered rates of interest, someday inside the subsequent 6-12 months – however the Fed is staying painfully tight lipped.

Ethical of the story: if the ETF information does not progress, we is likely to be ready some time for the subsequent crypto market worth pump.