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Effective Federal Funds Rate forum

Oct 20

Bitcoin’s price is currently stagnant, indicating an unusual market period. Let's see what this week brings. However, I firmly believe a minor correction to around $66,000 is needed after the recent surge. It is important to pay attention to the upcoming economic events that will undoubtedly have a significant impact on risk assets.

Economic Events Influencing Bitcoin:

1. Federal Reserve Interest Rate Decision: The recent rate hike announced by the Federal Reserve has historically led to a decrease in risk assets like Bitcoin, potentially impacting its price.

2. Inflation Data: Higher-than-expected inflation figures contribute to market uncertainty, often causing investors to shy away from cryptocurrencies.

3. Global Economic Slowdown: Growing concerns about a global economic slowdown are negatively impacting investor sentiment, resulting in decreased speculative investments in assets such as Bitcoin.

The interplay of these economic factors suggests that a pullback in Bitcoin's price is plausible, aligning with observed investor behaviors and market trends.

Based on my analysis, I reassessed some of my positions, opting to realize profits and adopt a cautious approach during this period of uncertainty to avoid any hasty decisions.

Take Care!

Oct 20

I anticipate a significant pullback in the Nasdaq soon. We’ve observed that many investors, including Warren Buffett, are selling their positions. It’s a prudent strategy to realize some profits and consider reinvesting in the coming months. Historically, when the Nasdaq retreats, BTC and other risk assets tend to follow.

Furthermore, the M2 indicator is also expected to decline slightly, reducing the money supply in circulation. Typically, this leads major market indices and risk assets, such as BTC, to follow the same trend.