Yes, the market this week will be determined by the FED ...... AGAIN
The FED will probably further increase the rate hike by not the standard 25 points but 50 points in May. And on top of that unleash 65 Billion in treasuries and 35 Billion in mortgage-backed securities from their balance sheets.
Now the current market is a mess already, maybe because this FED move is already priced in. If not this selling pressure might make the financial market cringe again.
The Fed ain't owning any crypto, or if they do they are not selling. But with the current correlation between the financial market and the crypto market...crypto might follow his big brother in a downwards trend due to the increased selling pressure.
Always look on the bright side of ... the FED cleaning their balance sheet
On the other hand, if things play out well. The money might flow into crypto from the areas that will be most impacted by this selling pressure.
We might even see an uptrend as we saw in 2018 when the Feds cleared their balance sheet, simply because it´s priced in already and therefore the impact might be less severe than expected.
In all scenario´s we will have a lot of FED FUD this week so get your buying and selling orders in today...set your stop loss and brace yourselves.
If these events play out a little positive it might just trigger the supply crunch we are so close to as I mentioned in:
How Low Can Bitcoin Go? I say 21K is the absolute bottom!
As per that article it just needs one little catalyst....will this bet it?
Guess we have to wait and see on Wednesday.
Don´t say I did not warn you and have a lovely rest of your day!
If you can´t get enough of me(which is hard to believe) you can also have a look at:
What would be the impact of World War III on the Crypto Market?