During the holiday period, the market generally remained on a shaking trend. The 25 basis point rate hike had long been priced into the market and did not bring about a trend selection. Powell then revealed several messages in his speech. Firstly, this rate hike is mainly sure to be the last. Secondly, the market had begun to expect a 100 basis point rate cut by the end of this year, a view that Powell refuted. But then went on to predict that the economy would grow at a moderate pace, not a recession. This statement can be interpreted to mean that a recession is still a possibility for the economy. But after a downturn occurs, the Fed will step in to save it. In addition, the view that the debt ceiling must be raised as soon as possible to avoid a default and that the banking sector remains sound was also mentioned.
Overall, the situation is under control. A severe crisis (a default on US debt) will not happen. The impact of a bank crash and collapse is also within manageable limits. Any panic about systemic risk can be interpreted as an opportunity to undercut for the time being. The recession probability is high, but a recession will mainly affect US stocks, not crypto. Even the recession has a more positive component for crypto.
During the holiday season, many cottage coins are traded lightly. This situation is prone to pinning and means that the choice of direction is getting closer. Just continue to be optimistic. Rate cut expectations, and a pick up in ETH pledges are still likely to be speculative themes.
Overall, the situation is under control. A severe crisis (a default on US debt) will not happen. The impact of a bank crash and collapse is also within manageable limits. Any panic about systemic risk can be interpreted as an opportunity to undercut for the time being. The recession probability is high, but a recession will mainly affect US stocks, not crypto. Even the recession has a more positive component for crypto.
During the holiday season, many cottage coins are traded lightly. This situation is prone to pinning and means that the choice of direction is getting closer. Just continue to be optimistic. Rate cut expectations, and a pick up in ETH pledges are still likely to be speculative themes.