Here's how one man on a ski slope in Wyoming, affected the entire crypto market...
Remember that sideways glance you’d get from your mom, when you misbehaved in public?
It was the look that said, 'I’m not going to blow up at you here, but when we get home - there will be trouble.'
It was a secret language only the two of you understood.
US Federal Reserve head honcho, Jerome Powell, and the financial markets have a similar coded language; where seemingly innocuous statements from JP can garner big reactions from the market.
This weekend in Wyoming, JP hinted that the Federal Reserve is going to continue hiking interest rates, in order to fight inflation. Which at this point in time, is business as usual. He pretty much said:
‘Yeah, so, no surprise here - we’re going to continue raising rates, because inflation still isn’t under control.
The hikes may be big, they may be small. We’ll make the decision depending on where we’re at, at the time.’
While continued rate hikes of some sort are to be expected, the mere possibility of further significant hikes was enough to switch investors into ‘sell mode.'
…their thinking would go something like this:
Further rate hikes means everyones monthly loan repayments will increase → which means they’ll spend less → which means there'll be less money invested in the markets → so let’s sell before prices dip.
…which they did.
And as a result, Bitcoin prices fell faster than they usually would (3.7% in 24hrs).
For a bit of balance and perspective, think of this news as having a ‘week to week’ or ‘month to month’ effect.
If you’re in crypto for the long haul, and focusing on ‘year to year’ or even ‘decade to decade’ growth, we have good news!
This probably won't impact you.
So you can tune all of this out and stay zen
