As I was writing previously, I have been quite worried about the FED FOMC Meeting and the potential wording on tapering.
It seemed as if the FED hinted that they might raise rates in the long-run (>1year). Nothing spectacular but enought to make traders and investors worried about the upcoming inflation and the tightening on the FED balance sheet.
I believe from an economic point of view that this is the good move as we need to stop this ever-more printing money machine.
But...
It will hurt in the short term all the assets that performed very weel over the past 18 months: Tech stocks and, yes, Cryptocurrencies as investors go risk-off.
The Dollar Index is shooting higher, meaning that USD is appreciating versus a basket of other FIAT currencies. If you remember, it was this indicator that launched the Crypto Bull Market as USD was depreciating versus other currencies.
We were saying that they were printing a lot more USD, making our BTC more valuable.
As you can see below, the FED is reducing its M2 supply creation
Not yet hawkish but clearly on the path to stop printing so much money as they understand now that there are consequences.
Cheers and Stay safe in these crazy markets !
Latest Analysis
👽RugDoc.io helps you to Ape into newly created farms on BSC or Polygon
₿itcoin Taproot Update is coming ! What is it going to change?
