What Happened Yesterday? The Market Rallied, Then Dumped — All Within a Few Hours…

TL;DR

• Inflation came in lower than expected, which rallied the market as expected, all before dumping back to where it started the day (after Jerome Powell’s press conference).

Full Story

You know how in video games, you can wear out a non-player character’s (NPC’s) list of preset responses?

Where at a certain point they just start to repeat themselves?

It feels like the Federal Reserve is stuck on a similar setting.

The past three times they’ve met to discuss inflation and set interest rates (the latest being yesterday), their response has been:

“We will continue to monitor the data and adjust accordingly.”

(It’s boring. But it’s better than “damn dude, things ain’t looking too good”).

In response to yesterday’s infinite-loop-of-the-same-statement, the markets were…choppy.

Inflation came in lower than expected (a 3.3% yearly increase, instead of 3.4%), which rallied the market as expected — pushing BTC from $67.7k to $69.9k.

…all before seeing it dump back below $67.7k a few hours later (after Fed Chair Jerome Powell’s press conference), taking the rest of the market with it.

Long story longer:

As of this writing, we’re pretty much back to where we were on Tuesday.

Easy come, easy go.