The FED says they will not make the same mistake of exiting too early this time around
Remember 2008-2009? It was the last major financial crisis prior to the ongoing pandemic.
The FED was the major story back then with QE1, QE2, QE3 and eventually QEInfinity.
How does that relate this time around?
Well, it's been going on again during the pandemic the Chairman of the Federal Reserve said they are unlikely to pull the punch bowl away too early this time around:
(Source: ~~~ embed:1354514087078719491/photo/1) twitter metadata:U29ubmVuc2hlaW58fGh0dHBzOi8vdHdpdHRlci5jb20vU29ubmVuc2hlaW4vc3RhdHVzLzEzNTQ1MTQwODcwNzg3MTk0OTEvcGhvdG8vMSl8 ~~~
They will continue with their asset purchase program and they expect rates to remain low for a long time.
Not wanting to make he same mistake they made last time of stopping these programs prematurely like they did after the financial crisis.
Interestingly enough, the stock market didn't like what Powell had to say today:
(Source: https://stockcharts.com/h-sc/ui)
With stocks falling another percent or two after Powell starting speaking.
During this same time, bitcoin came well off the lows. Briefly getting down around $29k before spiking to $31.6k currently.
This is interesting because many people thought that bitcoin couldn't go up if stocks went down, I guess for the time being that premise appears to be wrong.
Time will tell if this marked the low for bitcoin.
Stay informed my friends.
-Doc
Posted Using LeoFinance Beta
BTC has been doing so much crazy stuff lately, I don't even try to predict it. Since about this time last year actually. It has just been a rollercoaster for me trying to figure out what is going to happen. Lucky for me my stake is small, so it doesn't really impact me too much, but larger holders have to be pulling their hair out over the past year.
Posted Using LeoFinance Beta
I just follow past patterns and they keep playing out in a similar fashion. I'll keep following em until they stop working!
When do you flip to bullish with me? I've long said the lows would be $28k-$29k and are already in.
We will see. There is major deleveraging going on in the stock market right now, which also included bitcoin since it is more institutionalized now. If that continues, bitcoin will dip further.