Federal Reserve Chairman Jerome Powell has remarked that there could be rate increases in 2023.He also said that this is not certain. This while the inflation fears are causing concern.The Fed's decision seems to favour growth over inflation control. This has been a recurring theme, so that economy gets cheap credit lines and that it does not collapse with debt servicing.
Although the American stocks fell initially upon the news, they have since recovered. It seems as though the market had priced in the rates remaining low for a long time. Bitcoin didn't have a major reaction to this news. It looks more correlated with Elon Musk tweets more than anything else at the moment.
In this scenario, assets like Gold, Bitcoin, Ethereum have a Bullish outlook. Higher inflation and easy money in plenty. Watch the price go up like anything.
Whether it's good for the economy and the market, remains to be seen. Makes me wonder about the size of the bubble when they all go up much more higher than the ATHs. Also the Bear Market when it comes for all of us.
Bitcoin price has dropped below $39K after hovering above $41K yesterday. The Fear and greed index shows Bitcoin at 33 in the Fear range, meaning slightly high degree of fear. Patience is the name of the game here. Looking at going long from the dips in the $37-$36K range if I can.
NB: Not financial advice, Only shared for informational purpose.
