#CPIWatch Why is the market boring?
The market has been in a state of boredom and stagnation since the last week of November, as everyone was in a state of waiting and anticipation for the interest rate meeting. Jerome Powell came to consolidate this stagnation with his new rule: "There is no prior plan, we will make decisions at each meeting based solely on new data".
👈 The situation now: frozen liquidity
Due to this wait and the connection of the market's fate to the data, liquidity has "frozen". Large investors prefer to keep their money in stable currencies (Stablecoins) rather than risk it in an unknown direction market, thus creating this boredom.
⚡️ End of boredom.. next week:
This long and tedious silence will be suddenly broken next week, as the crucial data Powell is waiting for will be released, along with a threat coming from the east:
▪︎ Thursday (USA): (inflation and labor market).
Inflation data (CPI) and unemployment claims data will be released. And since Powell depends on this, the equation is as follows:
If the inflation numbers are higher than expected, that is very bad and means that the interest rate will remain high.
And if the unemployment claims numbers are lower than expected (i.e., a very strong labor market), that is also bad for the markets, as it gives the Fed a reason to delay the interest rate cut.
▪︎ Friday (Japan):
The world is watching the increase in the Japanese interest rate (expected +0.25%). Historically, this decision is considered a "nightmare" for global liquidity (as it ends the era of cheap yen), and on previous occasions, it caused a sharp drop in Bitcoin of 25% to 30%🩸
#BOJImpact
#USJobsData #CPIWatch $BTC
