Volatility has been the queen of the week.There is a lot of nervousness in the markets.On the one hand, the situation in Ukraine has become more tense.And many fear a war conflict.And, on the other, we had the Federal Reserve Meeting (the FED) of the United States.Actually, there were no big surprises following that meeting.What, in theory, is positive.As is usually the case in the markets, the expectation of the event is usually more important than the event itself.This time no decisions were made, nor said anything specifically.That is, we still don't know anything with certainty.But nothing is something.We have tones and insinuations.So the market interprets.
Let's talk about the statements of its director Jerome Powell.The speech was quite neutral.We already know that the Fed is preparing to adjust the belt in monetary policy.Everything indicates that bond purchase cessation is the step to follow.And the Fed will raise interest rates this year.Repeatedly.The tone of the question session was less neutral.It is clear that the Fed is coming too late.Which implies that surely you will have no choice but to step on the brakes in a much more aggressive way than it would have been ideal.
Why volatility?The markets are adapting to the new reality.Obvious that everything is very expensive.We have an obvious overvaluation in the price of assets.Current production simply does not justify such valuations.But the party was still frantically, because the Fed told us that the party would continue for longer.Now that the thing changes and the Fed is being obliged to change monetary policy before planned, the market has to rediscover prices.Does Tesla really are worth what is worth?Well, that's to look.
Why not a total collapse?One possibility is that we are still in denial and collapse will eventually come.Another possibility is that the situation is not as catastrophic as some proclaim.The labor market has recovered a lot.Production and distribution chains are becoming (slowly).And corporate income could save the day.In addition, the Fed is going to put the brakes gradually.That is, there will be time to digest the matter.However, we could assume that we will have a particularly volatile year.Of course it is not the same for markets to have a lot of money in circulation than having less money in circulation.Obviously things get quite cool with a less lax monetary policy.
Bitcoin is an extremely volatile asset.And it is an asset very sensitive to monetary reality.Therefore, it is also adapting to this new reality.Is in the process of discovering its price.And in the process of discovering your support.The situation is complicated.But it is still very premature to declare a bearish cycle.It is still viable to have a bullish year.The growth may be less than the previous years.But growth is growth.
Now, let's talk, with a critical eye, about the most popular cryptonotic this week.
Analysts say that Bitcoin's rebound in the USD 36,000 means that "it's time to start thinking about a background"
The investor must always expect the unexpected.It is a mistake to think about absolute.Could Bitcoin go down much more?Of course.That possibility cannot be ruled out at all.However, we cannot freeze by analysis.Inevitably, we have to put the cards on the table and make decisions.$ 33K could be a support.Because it places us above last year minimum.In addition, we had a pretty interesting rejection.The rebound took place during a fairly bassist day for the other markets.What could be indicating that the market sees this support as the fund.For now.
What is happening with the price of Bitcoin and cryptocurrencies?
Libertarians, due to their conservative ideology, cannot avoid the temptation to describe Bitcoin as a conservative and not risk asset.However, being very clear that Bitcoin is definitely an asset "Risk On".Which means that it is time to admit the obvious: the price of Bitcoin is closely linked to the decisions of the Fed.A monetary policy change implies that it was time to step on ground.In fact, the market has understood this.We are in an extremely delicate phase for Bitcoin.It is time to rediscover the price in this new world of lower liquidity.
Robert Kiyosaki, author of 'Padre Rico, poor father', wants to take advantage of Bitcoin's fall to buy: 'The time comes to become richer'
I am like Robert Kiyosaki.It is not a Warren Buffett.But the subject is nice.What he says is quite sensible.And its metaphors are very clear and entertaining.Now, Robert Kiyosaki is a showman.It is a kind of self -help guru.Let's say it is a financial coach.Which means that he lives from the show.He claims to have many investments and be an entrepreneur above all.But that's what he tells us.What we see is the coach.
The words of a financial coach are useful to some extent.But as serious investors we need are serious studies, not a sticky phrase.Nothing against Robert.My intention here is simply to remember the importance of reading serious studies.
Report: The nations will adopt Bitcoin, cryptocurrencies will reach one billion by 2023
It is not very rare to read an optimistic report from a cryptoxchange.Bakers are always seeing an increase in bread consumption.All this makes a great holder.But, personally, I prefer to hear the challenges, obstacles and the problems we must face first.Give it all without anesthesia.I want utility information.Not an accommodating head.For example, Salvadoran bonds are not at their best.And Bukele has lost a lot of public money with Crash.What do the nations of these risks think?Is everything rose color?Fidelity's report not only says what is published.There is much more.Who do we cheat?
BTC has just re -entered a key price zone that has indicated the beginning of the end of previous bearish phases
Everything indicates that we are in the area of the overall.However, there are no certainties of any kind.The future is not written.Things can always get worse.We are living exceptional times and the situation is terribly complex.
Let's analyze for a moment the fall caused by the Coronavirus in March 2020.We experience a great fall, but, soon after, the stimuli arrived.The recovery we saw occurred thanks (largely) to these stimuli.In this case, we also experience a great fall, but we will not have the same stimuli.In fact, this time we will have a liquidity withdrawal.Rather, the opposite situation.However, here they are comparing between the two situations to make the projections.
This is an opinion article and Cointelegraph does not necessarily adhere to what is expressed here by the author
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