There is a tendency to think that because something is lower in price, it's the lowest. That is not a good strategy to have in a tightening credit market. The best time to buy is when people have more access to money and credit to buy assets with, and that doesn't happen until central banks stop raising rates.
The Federal Reserve of the United States is hell bent to bring y/y inflation down to around 2%. That may take 12 to 18 months…because you have to wait long enough between interest rate hikes to determine if inflation is being impacted, and how it's being impacted, by the rate hikes.
The ECB is signaling that it will raise rates in July.
And don't panic sell! How you become wealthy is to hang on to your financial assets long enough to accumulate value over decadal periods.
That is why it's so important to not have debt you cannot service. Because it forces you to sell the financial asset at low prices to pay off the debt during credit contractions. And if you sell the financial asset, it can't accumulate value anymore, because you don't own it anymore.
Stay frosty and stay solvent people.
Forgot to give 35% to ph-fund...crap :(
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It will be quite difficult for the central bank to dictate how the crypto world will run
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The vast majority of the money and credit that pushed crypto asset prices up…all assets actually…was institutional money. That money is heavily influenced by how inexpensive credit is…and the Federal Reserve and central banks control the cost of credit.
That said, central bank policy is pretty much neutral about controlling crypto, especially in the United States. They care about market stability, inflation, and the unemployment rate...that's their mandate. If crypto is an integral part of that, which I think it will be, the Federal Reserve and central banks will be crypto’s best friend :)
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Dear @fijimermaid
Im not sure if I agree with your statement. Those who would wait until FED will stop raising rates may as well greatly miss the opportunity to accumulate crypto (While it's at such a low levels).
Also you've mentioned "central banks". Which is plural. Which means, that you don't only count FED but other major central banks as well.
Hoping that FED, ECB, Bank of Japan, Bank of England and Chinese central banks (all major ones) would stop raising interest rates at the same time may never happen.
So again: chance of "missing the train" if we wait that long is SUPER HIGH.
Also it's important to point out, that what we witness is hardly "tightening credit market". On one side you have central banks still bringing up interest rates and trying to remove some liquidity from the market. On the other hand - you have goverments still throwing money into different programs.
On top of that: speed of interest rates being increased is an absolute joke. With amount of currencies pumped into the market within pandemic period - it would take FORVER to remove even half of that additional liquidity from the market.
At some point markets will start to ignore whatever FED is doing. They have their "5 minutes" now. And everything will change once once this will happen. And it's just a matter of time. FED is a boogyman pretending to fight with inflation (while knowing that it is a lost battle).
Have a great weekend buddy,
Yours, Piotr
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The further raising of rates could cause a further downside in crypto
Hope the down trend ends soon.
If one keeps accumulating at lower rates one would be in a better position over time for sure.
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Over time, yes, in 10 years, crypto is going to be much higher.
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