In a few hours, Jerome Powell will take the floor to announce what the Fed's FOMC has decided in terms of monetary policy for the coming weeks. All markets around the world are eagerly awaiting these announcements, as they will have a strong impact on market movements for the coming weeks.

What will the Fed decide regarding interest rates? A “mere” 0.25% increase?

What is the Fed going to do about liquidity injections while inflation is exploding in America to 7.9% in February 2022, but on the other hand, the war in Ukraine is putting the growth of the American economy at risk?

In a few hours, we will have more answers to all these questions. And especially on how the Fed has decided to deal with the dilemma it faces.

This will be the end of uncertainty that the markets hate as you well know. The price of Bitcoin has been in a sideways consolidation movement for several weeks now, and it is clear that we are seeing a compression of its price:

Several Higher Lows and Lower Highs have been posted in recent weeks.

When we have this kind of compression on the price of Bitcoin, it results in some pretty quick price action. So once the Fed makes its announcements, you can expect a rapid movement in the price of Bitcoin in one direction.

The question at $100,000 is which direction the Bitcoin price will go next. Not having a crystal ball, I'll be watching this just like you.

In the meantime, it is interesting to observe that the markets seem to be recovering as the talks between Ukraine and Russia seem to be moving in the right direction. Of course, that can change very quickly, as an agreement seems to be a long way off, but what the markets want to remember is that we are moving in the right direction.

The S&P 500 rallied 2.14% in yesterday's session, and the Dow Jones rallied 1.82%:

Investor Dashboard freely available for Chrome Browsers

You can also see that the price of oil has fallen back below $100, whereas it had reached a high of $140 at the beginning of last week when the markets panicked following the ban on Russian oil imports announced by Joe Biden.

There are several reasons for this easing in the oil market:

1. The return of mass confinements in China and, again, concerns about Chinese economic growth.

2. The talks between Russia and Ukraine, as I explained earlier. Even if the negotiations seem to be stalling, the markets want to remember that the diplomatic path is not entirely cut off, and that is a source of hope.

3. OPEC has increased its production and says there is no shortage.

4. Russian oil, despite financial sanctions, still manages to find its way onto the markets, at least partially.

5. A deal on the Iranian nuclear issue which seems to be getting closer and closer would put Iranian oil back on the international market.

6. The expected relaxation of part of the US embargo on Venezuela to put more oil on the international market.

As a sign of this renewed confidence, gold has fallen back below $2,000 an ounce to $1,923 an ounce.

We will have more answers later today once Jerome Powell speaks.

Take a step back to better understand what is happening before our eyes

In the meantime, I invite you to think a little more deeply about what is currently playing out before our eyes with this war between Ukraine and Russia. The unprecedented sanctions taken by America will have a major impact on the international monetary system. A system that will probably tip towards a Bretton Woods III, by weakening the hegemonic role of the American dollar on the world.

While the current system was backed by the U.S. government paper since the early 90s, a kind of implicit Bretton Woods II, we will move to a system backed by gold, other commodities, and perhaps Bitcoin. A Bitcoin that will have a major role to play in the future as an asset totally independent of the yoke of central bankers.

If you're wondering which country should emerge as the big winner from current events, it's China. This is something I discuss in detail in the following article, which I invite you to read while waiting for Jerome Powell to speak:

"Birth of a Bretton Woods III – The Fall of the American Dollar King, the Emergence of Outside Money. With Bitcoin as the future king?"

Stepping back is essential to gaining perspective, and this article is my attempt to help you do just that.

In Bitcoin We Trust Newsletter: Everything around Bitcoin, Blockchain, and the cryptocurrency market