June 2023 - Market Overview - The FED Pause and a Bull Market in waiting.
Edition 39 - The Elite Cryptocurrency Investment Strategy Newsletter
PREMIUM NEWSLETTER FOR PAYING SUBSCRIBERS (Released every Thursday each month).
Before we crack into the fleshy parts of this week’s newsletter…
SEC whacks Binance and Coinbase - the regulatory hammer whacks the world's two most notable exchanges in the US, driving the prices of Bitcoin and altcoins to lows.
Fire Gary Gensler? - Congressional members have put forth a bill to fire Gary Gensler and reshape the authority of the SEC to stop over regulation and partisan attacks on innovation.
The world’s largest Bitcoin Mining Farm - The new home of Bitcoin, El Salvador, has greenlit the building of the world’s biggest Bitcoin mining farm
Welcome to our Market Update edition of the newsletter
In this issue, I’m looking forward to discussing…
- The FED pause
- The current market situation and our forecast
- How we go about finding a FLOOR in price to get the best entries for MAXIMUM return
I will cover
- Bitcoin
- Ethereum
- Altcoins
- The methodology around how we time great entries
Before I do, let’s quickly talk about the FED pause because it will have significant bearing on the Crypto market going forward
The will they/won’t they dynamic has been extensively written about and the question on investors' lips is: when will the FED STOP hiking Interest rates?
We got our answer this morning with the CME Futures markets correctly telegraphing the probability before the event…(see below)
What now?
We mentioned in our last few editions on this topic that strong rallies in risk for much of 2023 were pricing in the pause early, so the market reaction afterwards might be unexpected and possibly negative as a recession might move to top of the agenda.
A FED pause signals that we have reached a point where the powers that be are content with 5.25% and are willing to let the economy breathe
A “Skip” not a Pause?
What concerns us in the short term, and this was rather clever by Powell, was his insistence that they may need to raise rates again toward the back end of 2023 and cuts were off the table for many years
In my view, this was the FED desperate to put the brakes on risk markets (Stocks and Crypto), and while we can debate whether Powell’s forecast is likely or not, it gave markets a reason to second guess being bullish
The FED Funds rate and CPI have now crossed over and the yield curve inversion is at record levels (we covered this in the last edition)....
Historically, this is a sign when the rate hiking has reached its closing stages and poor economic data begins to play catch up - we of the view that the hiking is now finished.
On the charts, Stocks are trying to say that the FED is done - climbing a wall of worry with the S&P index now only 8.7% from all time highs before the hiking cycle began!
Summing up the outlook for Crypto…
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