Cryptocurrency News– Before we take a look at crypto assets, we need to take a look at some of the news that has happened in the last few days. Until a few hours ago, Donald Trump was pressuring the Federal Reserve to cut interest rates, and if you're new to all these developments, lowering interest rates basically would be a very bullish sign for financial markets. On the other hand, when the Federal Reserve raises interest rates or tightens quantitatively, it is perceived by the markets as bearish. For this reason, the recent trade war and the implementation of tariffs have lowered the markets.
Trump is currently trying to lower interest rates, but an interesting development happened a few hours ago. The Federal Reserve has officially announced a closed board meeting, and such emergency Fed meetings are not usually held very often. Fed meetings are usually held a month or a month and a half apart. Emergency meeting decisions are made during market bottoms. That's why we actually saw such a decision near the bottom of the March 2020 crash. When the pandemic first shook the markets and the markets were pulled straight down, we saw the Federal Reserve hold an emergency meeting and cut interest rates. This basically dragged the market to the bottom and pushed the stock market higher again. The Federal Reserve held a similar meeting during the 2008 financial crisis, and we saw it start cutting interest rates along with quantitative easing. We don't know the exact outcome of this closed board meeting, but the fact that it happened suggests that the Federal Reserve is considering rate cuts.
We saw the biggest decline in recent history in the US stock market index, especially on Thursday and Friday. This big drop in the market came right after the tariff announcements, but on Monday we first opened at a much lower level than Friday's close, and then we saw even more declines in the stock market than at the beginning. We then finally saw some recovery in the stock market and it closed in the green compared to the open. Still, it relied on the S&P 500 index on the daily timeframe to close just below Friday's close.
One of the reasons we saw a short-term bounce from the U.S. stock market during Monday's trading session is because the Federal Reserve announced an emergency meeting. Looking at the NASDAQ 100 index on the weekly timeframe, we announced that the naked market signal was approaching before this latest decline. It was a big warning signal pointing to more bearish price action, and we said it about a month ago.
However, there is currently an oversold signal for the NASDAQ 100 index on the weekly timeframe, and the last time we confirmed such a signal was around May 2022. Looking at the historical cycle, an oversold signal may be followed by short-term relief. Still, getting the oversold signal doesn't confirm that we've bottomed out. The outlook for the U.S. market clearly points to bare market conditions. Considering the relationship between the U.S. market and the crypto market, we need to keep a close eye on such signals.
The information in the content of the article is for informational purposes only. It does not constitute any investment advice. The author and kriptoparahaber.com are not responsible for your profit or loss arising from the investments you make. Investment is ultimately based on many foundations such as knowledge, experience, research and personal decisions.
The content is for reference only, not a solicitation or offer. No investment, tax, or legal advice provided. See Disclaimer for more risks disclosure.
Crypto market today: Have the reversal movements begun?
Cryptocurrency News– Before we take a look at crypto assets, we need to take a look at some of the news that has happened in the last few days. Until a few hours ago, Donald Trump was pressuring the Federal Reserve to cut interest rates, and if you're new to all these developments, lowering interest rates basically would be a very bullish sign for financial markets. On the other hand, when the Federal Reserve raises interest rates or tightens quantitatively, it is perceived by the markets as bearish. For this reason, the recent trade war and the implementation of tariffs have lowered the markets.
Trump is currently trying to lower interest rates, but an interesting development happened a few hours ago. The Federal Reserve has officially announced a closed board meeting, and such emergency Fed meetings are not usually held very often. Fed meetings are usually held a month or a month and a half apart. Emergency meeting decisions are made during market bottoms. That's why we actually saw such a decision near the bottom of the March 2020 crash. When the pandemic first shook the markets and the markets were pulled straight down, we saw the Federal Reserve hold an emergency meeting and cut interest rates. This basically dragged the market to the bottom and pushed the stock market higher again. The Federal Reserve held a similar meeting during the 2008 financial crisis, and we saw it start cutting interest rates along with quantitative easing. We don't know the exact outcome of this closed board meeting, but the fact that it happened suggests that the Federal Reserve is considering rate cuts.
We saw the biggest decline in recent history in the US stock market index, especially on Thursday and Friday. This big drop in the market came right after the tariff announcements, but on Monday we first opened at a much lower level than Friday's close, and then we saw even more declines in the stock market than at the beginning. We then finally saw some recovery in the stock market and it closed in the green compared to the open. Still, it relied on the S&P 500 index on the daily timeframe to close just below Friday's close.
One of the reasons we saw a short-term bounce from the U.S. stock market during Monday's trading session is because the Federal Reserve announced an emergency meeting. Looking at the NASDAQ 100 index on the weekly timeframe, we announced that the naked market signal was approaching before this latest decline. It was a big warning signal pointing to more bearish price action, and we said it about a month ago.
However, there is currently an oversold signal for the NASDAQ 100 index on the weekly timeframe, and the last time we confirmed such a signal was around May 2022. Looking at the historical cycle, an oversold signal may be followed by short-term relief. Still, getting the oversold signal doesn't confirm that we've bottomed out. The outlook for the U.S. market clearly points to bare market conditions. Considering the relationship between the U.S. market and the crypto market, we need to keep a close eye on such signals.
The information in the content of the article is for informational purposes only. It does not constitute any investment advice. The author and kriptoparahaber.com are not responsible for your profit or loss arising from the investments you make. Investment is ultimately based on many foundations such as knowledge, experience, research and personal decisions.
Related News