TL; DR
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When you first start learning to read financial markets, you think it will be a matter of learning a math-based process that ultimately answers a yes or no question. But it’s more like reading tea leaves.
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The price rose after people in the market collectively began to feel that the Federal Reserve will stop raising interest rates in the coming quarter.
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All these positive price movements, not thanks to math, but thanks to an unconfirmed suspicion that the effects of inflation might be behind us?
Full story
It’s funny, isn’t it?
When you first start learning to read financial markets, you think it will be a matter of learning a math-based process that ultimately answers a yes or no question.
But it’s more like reading tea leaves.
It often involves assessing the mood on Wall Street after a CEO makes a forward-looking statement, and gauging the general “vibe” of the buying market.
Yesterday’s Bitcoin price jump (from about $25.5k to $27.5k) is no exception to this rule.
The price rose after people in the market collectively began to feel that the Federal Reserve will stop raising interest rates in the coming quarter.
(And fewer interest rate hikes means less money spent on loans and lines of credit, which means more money can be spent on investments like BTC).
It also came as a special surprise! Bitcoin showed an ominously named chart formation known as a ‘death cross’ last Tuesday, which is followed by a price drop 60% of the time.
All these positive price movements, not thanks to math, but thanks to an unconfirmed suspicion that the effects of inflation might be behind us?
Weird how it works sometimes.
But hey, if this means a $2,000 jump in 24 hours, we say to the market:
Let your crazy flag fly!