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WHY BITCOIN AND CRYPTO DUMPED?
THE MARKET DUMPED BECAUSE
OF ONE REASON 👇
THE FED TURNED HAWKISH.
IN THE PAST FEW MONTHS, CPI HAS STARTED TO GO UP, AND THE FED NOW THINKS THIS COULD BE A PROBLEM.
IT WAS EXPECTED THAT THERE WOULD BE 3 MORE RATE CUTS IN 2025, BUT AFTER TODAY'S FOMC MEETING, THE ESTIMATE IS DOWN TO JUST 2 RATE CUTS.
NOT ONLY THAT, THE FED THINKS THAT ITS 2% INFLATION TARGET WON'T HAPPEN ANYTIME SOON, SO THEY'LL KEEP THE MONETARY POLICY A BIT RESTRICTIVE.
IN SIMPLE TERMS, SLOW THE RATE CUTS AND DON'T START THE MONEY PRINTER.
AS WE ALL KNOW, BITCOIN AND CRYPTO PERFORM BEST WHEN THERE IS EASE IN MONETARY POLICY.
WILL THE MARKET CONTINUE TO GO DOWN?
IN THE SHORT TERM, MAYBE YES.
IN THE LONG TERM, WE'RE GOING UP ONLY.