Support at 112500-113000 held, but another test of 112K is possible during the US session.
The external background is negative. After the release of economic data, the markets have reduced the probability of 2 rate cuts this year.
There is nothing unexpected, but against the backdrop of previous stories with labor market data and inflation, the market perceives the situation negatively, stock indices are falling again, and the dollar index is above 98.5.
But altcoins are still holding up well. Ethereum is above 4200, and most of the top coins are rising.
As for the stock market and the rate - there is no alternative to lowering the rate. The longer it is not lowered - the faster it will be lowered later. I think that by the end of the year, there will definitely be 2 cuts, and it is quite likely that there will be a third. When the market realizes this, we will see strong growth.
Why there is no alternative to a quick and rapid rate cut - I have explained many times. Now I will add that the US Treasury is already buying back its own debt. And bond yields are still rising. This makes the need for the Fed's prompt intervention unavoidable.
Powell is speaking today (17:00 Moscow time).
Whether he will please the market or cause a slight drop depends on how well Trump's team worked with him. If he again brings up his constant mantra about the need to fight inflation, thereby giving Trump the middle finger as he did before - the markets will fall but quickly recover. This hits Trump’s authority hard.
Yesterday Hammack (from the Fed) spoke in Powell's style with criticism of tariffs. We are waiting for Donald's reaction. Although so far we see that he can only write threatening posts. And this is not only about the Fed.
Several news items:
- China is considering the issuance of stablecoins backed by the yuan. Applications for the issuance of stablecoins have already been submitted by Ant Group and JD.com - Chinese tech giants.
New stablecoins of this scale mean increased liquidity in the crypto market and a strong growth factor.
- The company Ming Shing Group (Hong Kong) plans to raise $500 million to purchase BTC for its balance sheet.
- Trump's son Eric Trump claims that some country secretly bought 200k BTC.
- Coinbase CEO Brian Armstrong states that by 2030 Bitcoin will reach $1,000,000.
Reasons: regulatory clarity, the creation of state Bitcoin reserves, inflow of capital into Bitcoin ETFs.
In the medium term, everything is more than fine for the markets. The prospects are clear and understandable. And the current decline is an opportunity.
However, those who did not buy Bitcoin below 100K (or at least below 110K) and Ethereum below 2K (or at least below 4K) will miss out again.
Because if you do not change, neither do your actions.
And if actions do not change - results do not change either.
- Most people do not achieve the expected results either in life or in the market.
"TAKEN FROM THE MAIN CRYPTO CHANNEL"
