Why crypto market dumped? ✍️
Good evening to all my friends. I hope you all are doing well. I am having a good day. Here's the another fantastic weekend to spend some time with family and friends. Let's talk about crypto market. Crypto market dumped heavily after financial market carsh. Bitcoin dumped 15% from the top while ether dumped 25% from the top. In the last 24 hours, there has been a heavy sell-off in the financial markets after the recent Fed meeting. Powell’s statements, particularly about no new money printing (quantitative easing), caused concern. Historically, after three rate cuts, we usually see QE, but this time, the Fed didn’t announce it, which led to a 3.2% drop in the stock market, wiping out $1.5 trillion. Many US citizens without jobs pulled their investments out of the stock market, which affected the crypto market as well. Powell also mentioned that the unemployment rate is still low, but the labor market is slowing down, which added to the market’s negative reaction.
Powell's statement that it could take two years to reduce inflation to 2% suggests that inflation may rise in the short term, further affecting markets. Until the Fed starts quantitative easing, new money will not enter the market, leading to continued sell-offs. We will need to wait for the next Fed meeting in January for further clarity. I think this is pure manipulation because they want to see us making huge money from market, that's why they did this. Overall i just want to say hold on to your crypto and don't sell them in cheap to whales and institutions. Good days are ahead, patience will give you reward. That's it for today. Thanks & have a good weekend!!