Ιn the last year we have seen that the biggest influence on the cryptocurrency markets as well as the traditional markets has the regular Federal Open Market Committee meeting. the specific meeting is being held to review ,strengthen or loosen the economic policy of the federal reserve.
What is the Federals reserve role?
The Fed's role is to maximize employment, stabilize prices, and moderate long-term interest rates (inflation). this results in anyone who deals with risk assets (shares, crypto, etc.) having every date that the meeting takes place noted.
What that meeting did in 2022?
In March 2022 the Fed raised its interest rate by 25 basis points 0.25%
In early May 2022 the fed raised its interest rate by 75 basis points 0.75%
The Fed also announced in may that it would be reducing its holdings of Treasury and mortgage-backed securities (QT)
In June 2022, the Fed raised the rate by an additional 75 basis points 0.75%
In July 2022, after Consumer Price Index numbers showed inflation was 9.1% the Fed raised interest rates by an additional 75 basis points 0.75%
On August 2022they took a little vacations.
In September 2022 the fed raised the rates by 75 basis points 0.75%
What of October ?
This month the fed has no meeting in the calendar so this month is clean in some way. the only things that can influence the markets is the big companies earning but i do not believe that we will see market moving loses.
If you want volatility you should wait for the next meeting.
Aftermath of the raises ?
S&P 500 -22.6%
Nasdaq -32.15%
Dow jones -16.48%
BTC 53.10%
That proves how big of an impact its meeting and its rate raise has on the markets.
Feds goal?
The goal is to raise the interest rate to as high as 4.4% by the end of this year and holding to until the end of 2023.
Bottomed ?
Probably none of the above markets will bottom until the fed is finished with the interest raises and that wont happened until inflation is down by a lot or something breaks for the US economy .
https://en.wikipedia.org/wiki/Federal_Reserve
https://www.federalreserve.gov/monetarypolicy/fomc.htm
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This is a great information, thanks for sharing
Isn't it incredibly tragic, that a private banking system like FED, controls the world's developments! F*ck!
Yes . Let’s hope we achieve true decentralised finance