Federal Reserve Chair Jerome Powell says the central bank will keep raising interest to fight inflation. So forget about the bottom for now.

Jerome Powell just said it. Interest will keep going up without any sign of retraction. If we take the history we all know that every time inflation peaks the markets finds the bottom. You can check the data of previous crashes and make some conclusions. This is not advice, but if you’re in the group that thinks that “history repeats itself” it could be a good idea to wait a few months until the stock market and the crypto market dumps again and find a better enter position.
On the other side, I think that is not a bad idea to start a DCA strategy since we are really low in prices right now, specially BTC and ETH. I’m sure they will dump in the future, but maybe not enough to try to time the bottom.
Anyways, this year can be a great opportunity to buy if you believe in crypto.

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28 thoughts on “Federal Reserve Chair Jerome Powell says the central bank will keep raising interest to fight inflation. So forget about the bottom for now.”

  1. The writing has been on the wall for months and Powell has been pretty transparent on how many hikes/% goals he has in mind.

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  2. I don’t think about these things anymore. Maybe I’m stupid but I invest 15% of every paycheck at a 50/50 ratio stocks/crypto. It’s taken from bank account automatically, just like my rent, car insurance, etc. I go without on a lot of luxuries, but that is in the now. I’m working for the future, so I don’t think about it anymore- I just do it.

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  3. Even if you have a relatively strong opinion on what the market’s going to do next, you should always have a plan B in case the opposite ends up happening. I don’t even think it’s anywhere near obvious that the bottom was in, I’d tell anyone who thought that to look at how long bear markets usually last, this was *waaaay* too soon.

    There are always relatively good sized bounces here and there even in bear markets, so we’ll all have strategically advantageous times to adjust our positions if need be, but I’m assuming the bottom isn’t in. If I’m wrong, oh well I have some low buy orders that never filled. If I assumed the bottom *was* in and I was wrong, I could very well end up down on a buy I made today for the next 2 years.

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  4. In the last bear market in 2018, I noticed that just a few currencies did well. Most of them lost their development teams.

    I expect BTC dominance to increase in this bear market even more.

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  5. If high interest rates are anathema to investors, then how do you explain the ’80s? I think people these days have very short memories because education has not been focusing on facts and figures in quite a while. Now it is more about, *How do you FEEL about history and how can I improve your feelings about it?* Young students: correct me if I’m wrong. Did you have any idea that the 1980s saw one of the greatest stock market bull runs in history, even though interest rates were *extremely high*, between 5-10% for most of the run? Now people think 2% is going to break the banks. What happened? Genuine question.

    P.S. If y’all think 10-15% APYs are ‘unrealistic’ today, ask me how much interest I earned on my early ’80s savings account at the Canadian Imperial Bank of Commerce. It was in the double digits as well.

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  6. This is pretty obvious. If BTC can stay above $13K I’ll be happy. That is still 300% above its 2018 all time low.

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  7. I keep hearing comparisons of this downturn in the cc market to past downturns. Too many people do not seem to understand that we are in a transformative moment in the economy. Crypto’s rise has been almost entirely during the era of easy money (last 10-15 years in particular) and inflated asset prices. An upcoming, prolonged period of stagflation and high interest rates would present a novel test for crypto prices, unlike what they faced in the past. The bottom could easily be quite far ahead of us.

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  8. Did you see where he said there is no evidence to inflation being fixed?

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    To me it is a “we will hit you until you are happy about it” “are you happy about it yet?”

    If they really want to fix inflation what they need to do is some of what they are doing, but they need to bailout the people and not the Fing banks/companies this time. Basically, they need to cut down on new loans, but at the same time they need to given handouts to the people. The last time they did it, it caused a trickle up effect. This ended up helping smaller companies and as they needed more material or whatever it went up from there.

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  9. I just started my 30 week DCA. Fingers crossed but thinking I will get some bottom buys in 20-30 weeks hopefully!

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  10. Will this not be priced in soon? If everyone has access to that information, they will adjust their exposure accordingly. Although unlikely, the bottom could well be now

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  11. Watch the treasury yield, people! Forget the rates. Look at who’s buying the debt. If they wanted to battle inflation with rasing rates, they wouldn’t be pouring more debt in the system through the other door.

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  12. lol, at this point rate hikes have been priced in already.

    Actually, the fed is WAY behind the market in that sense, the market has priced a -4.5% effective rate in so far and the actual rate is at 1.52%.

    Edit: I’m not saying the bottom’s in, **just that interest rate hikes up to 4.5% have been priced in**. Stop tergiversing or triying to contest an argument i’m not making…

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  13. I feel like the bottom happened last weekend. We may retest, but it’s unlikely. Average national gas prices have gone down 8 straight days and the Fed can’t do anything about inflation anyways besides create demand destruction, which it already has. There’s nothing left for the Fed left to do but hole another 75bps and then stop. A 4% FFR is priced into the stock market right now and it’s not gonna happen

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  14. Luckily markets tend to price in somewhere between 9-18 months in advance..

    So even if TODAY is not the bottom it is highly likely we are within a few % of the bottom considering they have also said that in 2024 they will likely be lowering rates already.

    Most people are new and don’t understand that markets are forward thinking

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  15. have we forgotten the war as well and the upcoming

    1) energy crisis
    2) bond crisis
    3) housing crisis
    4) credit crisis
    5) food crisis

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