A lot of things have happened with market in just the first day of november and it's time to let's have some insights about what's going at the moment starting with FOMC.
Fed Keeps Rates Unchanged
There's one rate hike remains in this year hinted by fed in last FOMC meeting and there were chances of raise happening this month.
Unexpectedly interest rate and remain unchanged in this meeting. Technically it's not a good thing nor bad, market just didn't care about these macro events.
We've seen much volatility in last hours due to FOMC and when Powell came to speak he said something more unexpected.
In his speech, he said "The committee is not thinking about rate cuts at all.”
Powell has previously told we want to keep interest rates higher for more long and also is expected 2024 will be rate cuts cycle now when 2024 is almost here they've clearly gave a hint we're not thinking about it.
Ever since March 2022 we've seen 11 increases and now two back to back pause while benchmark remains at 5.2% and 5.5%.
So, he himself said it's a long way to getting inflation sustainably down at 2 Per cent.
Is High interest Rates bad for Traditional Market and Crypto?
When the interest rates are high it makes borrowing money expensive and people find it hard to invest in stocks or crypto market during this period.
High interest makes savings and those bond more attractive that's why fed wants to keep it high so people hold onto them.
Image by Gerd Altmann from Pixabay
And can see some Strength in the usd they're printing out every then and now from thin air.
When politically or economically things aren't going good for USD, it's that time when high interest rates doesn't matter and people still hop into crypto or stocks. We're currently in this situation at the moment .
Crypto Market Response to this FOMC
This whole day market was more volatile and btc every -0.5% dump was getting filled easily.
There's someone in those orderbooks buying every slightest dump.
This is pre and post FOMC $BTC price action. First, an hour before rates we traced back to $34k hitting those stops and than came over to $34.5k range where it was just swinging nowadays but now it's above 35k.
Move of the day was scene in Solana.
The Surge in Solana after FTX cascade
After the FTX collapse Solana was crushed hard and made that bottom at $9 and ever since that this whole year Solana was hanging b/w 10-20 and everyone was hating it, fud thinking it is still going below two digits.
Now with the help of all that hate and fud sol have made a surge like not seen in long times
It only gained 28% in first day of this month and SOL is going up only since October has begun.
How I see ETH will Bottom
After this Solana move, I see ETH and SOL having one thing in common "hate and fud" people are so frustrated holding ETH and it's not doing anything while BTC, SOL and others are going up.
This frustration will make big fishes capitulate on eth and when SOL top will be in cash flow will move into ETH.
It's insane to see SOL is doing more volume than ETH.
Leading the altcoin rally as we're already in it just because of SOL.
Altcoins to Rally in November?
bitcoin Dominance is going down and now cooling down is a sign that Altcoin will gain some Momentum.
Dominance going down is already resulting in Altcoins upside move. Strong Altcoins are catching up a lot quicker than others like SOL, RUNE, INJ and few more.
I've shared the hive expected movement already which in short is testing $0.4 and once breakout from there we'll see quick $0.5+.
Conclusion.....
All of the signs are indicating this month will be a good one.. as long as spot sellers aren't leaving much impact on BTC despite of pressure it is getting absorbed so this is something a good thing after FOMC.
In the end I would like to know what you think as well and how you're planning moving forward.
