Crypto market in fear due to monetary policy tightening!

Crypto markets are going through tough times as the Federal Reserve tightens its grip monetary policy. The Fed overshadowed all the good news. This is quite normal because the investors they turn to safer investment options because access to liquidity becomes difficult. It is resulted in selling due to indifference to risk markets, including cryptocurrencies. The increase in interest rates and the move to a tighter monetary policy triggered the inevitable scenario for risky markets. The shift of institutional investors to safer assets such as Treasury bonds negatively affected risk markets, including cryptocurrencies. Such as the influx of money into the market during the pandemic triggered growth, the last two years we experience the opposite. The unique problems of cryptocurrencies have certainly played a significant role role in increasing losses. But that will eventually come to an end and the Fed will start lowering again interest.

The Fed does not give a clear projection of the beginning of the process of reducing interest rates, on the contrary conventional opinion. A balanced transition process (usually called soft landing) because it could negatively affect bond yields. We will see the Fed begin cut rates when the rise in inflation stops and the current policy succeeds, and it will not long after cryptocurrencies are likely to return to their former glory days. A popular analyst known under the pseudonym Credible Crypto says that the Bitcoin index relative strength (RSI) shows a classic bullish divergence on the daily chart and hidden bullish divergence on the weekly chart. In technical analysis, classic bullish a divergence is usually seen as a reversal signal, while a hidden bullish divergence an indication that the trend continues.

Read more from the blog

News

3 May 2023

StoneBlock CEO: Nervous investors will be eliminated from the market

News

15 Apr 2024

BITRACE PROVIDES CRYPTO CRIME INVESTIGATION TRAINING TO HONG KONG POLICE

News

15 Apr 2024

VENTURE CAPITAL INVESTMENT IN BITCOIN STARTUPS SKYROCKETS