WHAT HAPPENED WITH BITCOIN AND MARKETS TODAY
s markets to rise, basically its due to what powell said and how what powell did, But to me it doesnt make a whole lot of sense, but i will go over it anyways and let you know what i think and also talk about how oversold bitcoin is still right now, even with todays rise, but before i get to that. As you can see, i have just settled in to my uh my hotel room. I am traveling for the next few days, but take a look at that. I am in portland right now, man, its beautiful look at the mountainside. In the background, it is absolutely stunning enough about that lets talk about what happened today. Well here, as you can see – and most of you guys already know this, because i created a video also at the airport, uh fed chair powell, had his conference and talked about the 75 basis. Point hike the largest one since 1994 yeah thats a long time ago. So this is unexpected. It was supposed to be 50 basis points all of a sudden, 75 basis points himself. Just just a few months ago said that 75 basis points was not even being considered, and the next two rate hikes was going to be 50 base points. All of a sudden, we get 75 basis points, and not only that he did say that the next one, which is next month so its not too far away the next fomc meeting they can bump up the rate by another 75 basis points so thats not out Of the realm of possibility right so that thats a lot thats a lot so were were basically in the us were going to see a major contraction happen.
The economy is going to slow down drastically because according powell he wants the total interest rates to go up by about 3.75 by the end of the year, which is way higher than previously stated. But in a surprising move. The markets rallied dow went up 300 points. Nasdaq won 270 is just is this just a relief rally and tomorrow look at the pre market in a green two? This was totally unexpected unexpected, because this was a sun shock right and the markets still rally could be because of how oversold we are and for bitcoin. You can see nice little nice bump too about 22 4. This morning we were still below 21 000. So a little good bump and if you look at the entire crypto market cap, it has gone up as well too and theres many many that are in the green right. Now. Many all coins double digits, uh off to a good start so far, but of course we are still very oversold and nowhere close to even some of the previous highs weve seen from a week ago now something interesting about this is powell did say its not in His interest to throw the us into recession – that is not his main objective. Well, no duh uh, but he does think that the labor force is still strong and he will keep raising rates to curb inflation and he still wants to see inflation go down to about two percent by the end of the year, which at this point seems very, Very unlikely, but that is something that hes trying to you know thats his goal right, but heres.
The thing take a look at this: according to zero hedge, the last time the fed hiked the interest rate up by 75 basis points back in 1994. We already established that, seven months later it had to cut the rates, because there was too much economic slowness, and that is what a lot of people are predicting that, by the end of the year, were gon na see so much slowness. That not only are we in a recession but were entering depression and that the fed has to cut its rates again right, and then we start the cycle over and over. Hopefully that is not the case uh. Hopefully we dont enter depression. Hopefully, the economic slowness is just enough to slow down the economy and curb inflation, although were only tackling inflation on one side he has said over and over and over again, even today, supply chain issues still is uh is still an ongoing issue right. He mentioned energy prices right and many commodity prices, um and food right. These are things that is out of our control right now because of a lot of external factors going on. So he cant do anything about the supply side, but he could do something about a demand side, but again its a slippery slope, because if you go too aggressive, decreasing demand, what you go get is not only recession. Youll get depression right, so kind of fed actually went up this much or was this aggressive guess what happened? They had to decrease their rates only seven months later.
Now? What about bitcoin? Is it oversold? Yes, even at 22, 000 of course, its very very oversold still near that bottom still near that 200 weekly moving average and according to the dormancy flow bitcoin is so oversold has not seen this level since 2011., not even 2014 or 2018 or 2020 or 2021. We are at a level equal to 2011., think about that when bitcoin was still when bitcoin was at two dollars thats. How oversold we are using this dormancy flow model right so definitely still a fantastic time to be stacking sets and due to todays a mini pump mini gain. You could see that yeah. A lot of short liquidations happen today, right 3 billion observed on binance. That is a lot, but, of course, because of bitcoin being so oversold take a look, the whales are just stacking and stacking and stacking and stacking, and that is whats happening, but its not just the whales. A lot of retail investors are also stacking, and this is definitely the time to be stacking because you want to buy low and you want to take advantage of the cheap prices. So if you like bitcoin at 69 000, if you like, bitcoin at 50 000, you should love it at 22, 000 right so thats it for this short update just want to. Let you guys know what happened today with powell. I think its still surprising that the markets actually rallied after the 775 basis point like uh, but i guess well see for the rest of this week right we have tomorrow right now, futures are looking good.
So maybe we do get another green day today which of course we will welcome, but you know theres still a lot of uncertainty. I still think this could be a sort of a fake out rally right now, because lets not forget were already halfway through the month and not only are we going to experience a 75 basis point hike this month, but were going to experience another one next month. Paul already said, 50 to 75 basis. Point right. So again, the rate hikes are not going to stop theyre going to keep coming and were going to get more inflation numbers and were going to get more measurements so um. But it is quite surprising, but one thing that is not surprising is bitcoin right, bitcoin is holding strong right now. I know many people are still fearful, but this is definitely time to be stacking sats and focusing on the future all right thats. It guys smash the like subscribe to the channel and ill see you guys tomorrow, probably no morning stream, but ill, definitely stream at night. For you guys all right, so stay tuned.