The cryptocurrency market has recently taken a beating. For at least a week, Bitcoin has been spooking markets across the board, and yesterday’s celsius drama furthers investors’ anguish.
Everyone in the crypto world feels that things will only get worse and that all bull runs will end. Let’s find out why with the help of Chico Crypto, who provides insight into the coming chaos.
Following the recent news, everyone is now talking about the upcoming FOMC meeting on inflation, which is due this week. When all of this data is put together, what does it mean?
Markets Are In A Bearish Mood.
In reality, things do not appear to be looking up anytime soon. Inflation hasn’t dropped as much as projected since March’s forecast of 8.5 percent. Many experts projected that inflation would begin to retrace and continue to do so month after month based on actual data.
In April, though, inflation fell from 8.5 to 8.3 percent. Nonetheless, the data revealed late last week demolished the theory, as inflation began to rise to 8.6% in May, indicating that it is simply a blip on the radar. While most economists believe it will have just a temporary, fleeting impact, a faster-than-expected rise in some of those prices is positive.
The FOMC Has Started To Frighten The Markets.
With only a 50 basis point rise, inflation is expected to be kept under control in the subsequent two sessions. Everyone expects Jerome and the Fed to become more hawkish, implying a 75-basis-point increase. That is exactly what the markets are currently expressing.
If it’s 75, there’s no reason to expect a significant drop today. This is already factored in if they merely accomplish a 50. They are starting to retrace and are turning bullish.
Why Are Experts So Optimistic About Bitcoin’s Future?
The bull market, according to the Youtuber, will not begin until the Fed and other central bankers across the world adjust their strategy, which would include, at the very least, halting rate hikes and keeping the precise size of their balance sheets. The FED and other central banks are currently favoring decreasing their balance sheets and raising interest rates to combat the inflation expected to continue soon.
