The cryptocurrency market did not tumble after the Fed meeting, as expected, where interest rates were increased by the largest amount since 1994. Instead, the price of Bitcoin rose from $20,500 to $22,000. Some investors are questioning if this is a sign of a bottoming out or a trap for long positions. Crypto specialist, The Superman, believes that the cryptocurrency market is the best route to retirement and hopes for prices to drop in order to accumulate assets at lower prices. He believes that the market has priced in the volatility from the interest rate increase but may not have fully felt its repercussions yet.
The Crypto Market Reacts to Fed Meeting: Bitcoin Breaks Out
The recent Federal Reserve meeting has caused some confusion and uncertainty in the crypto market. Many were expecting the Fed to increase rates, which would have led to a large drop in the cryptocurrency market. However, instead of tumbling down, the market has experienced a breakout where the price of Bitcoin went from $20,500 to $22,000. The question is, why has the market reacted in this unexpected way?
The Superman of Cryptocurrency, who has been making cryptocurrency videos for five years, has been closely following the recent developments. His reasoning for investing in cryptocurrency exclusively is that it is the strongest asset class we have ever had in history. Bitcoin is the fastest-growing asset that has ever existed, and cryptocurrency as an ecosystem has grown with Bitcoin, making it a great investment option for retiring early in life.
Jerome Powell announced during the most recent Fed meeting that they were raising the interest rate to 0.75 percentage points, the biggest increase since 1994. However, what was surprising was the announcement that they were expecting to maintain a high-interest rate or high basis points on a monthly basis. The reason why the cryptocurrency markets crashed this far is because of the rate of increase on the interest rate. It went up 50 basis points, and what was said last month was that there was going to be a maintenance of 50 basis points. So, actually, we have gone up a whole 2.5, the largest ever since 1994. Yet, the market has shot up. Why is that?
The Superman of Cryptocurrency believes that the market has priced in the volatility of Bitcoin in anticipation of an increased interest rate. However, he argues that we are not seeing the full repercussions of that decision yet. What we are seeing is market manipulation taking place, which is essentially what causes fake outs in the market.
In conclusion, even though the recent Fed meeting has caused some confusion and uncertainty in the market, it has also presented some opportunities to invest in cryptocurrencies at a lower price. With Bitcoin and other top cryptocurrencies rolling back to prices we haven’t seen in years, now might be the right time to accumulate and invest in them. As always, investors should do their own research and be cautious of market volatility.