In recent months, Bitcoin price has been effected by the stock market performance, because institutional traders use leverage, so when there's a drop in stocks they need to liquidate BTC positions to free-up cash to cover margin calls.
And I've been watching the FED announcements since November, they've been alternating hot-and-cold, it's something different every few weeks with Jeremy Powell.
They claim there will be multiple interest rate increases this year, the market takes a dump based on the news, and suddenly "we might have to reconsider the number of rate hikes", market goes up again.
Even now, the FIRST interest rate hike in many years, and immediately tech stocks plummeted, we're already seeing massive job losses.
And the FED is calling for another rate hike, I think in 3 months? But if the stock market losses keep going, and unemployment numbers hit 9 to 10%, the FED has to cancel the next rate increase, because they have to keep unemployment numbers low as well.
It's a see-saw. They change the strategy from week to week.
But the market reacts instantly to the news, and then gradually balances back, and we see small runs again.
There's a good recent video that explains the details of these macro-economics:
I think the takeaway is this…
The FED is creating a perception of Fear and Panic.
But this is only temporarily tightening the trading in the market.
It almost looks purposeful, like they're trying to get retail investors to sell at a loss, while hedgies swoop in and buy everything at a 35-50% discount.
Then they reverse the FUD, market rebounds, hedgies sell, and cause another FUD dump with lower-lows.
They're just playing with us at this point.
If you really don't need to access the money for 2-3 years, don't sell. And if you have cash, DCA when those -25% -35% intervals are hit, expecting that they will appear.
I don't think the Fear is legitimate, it looks manufactured.
And if you know anything about the options that the FED has these days (hint: no options, they MUST print more money sooner or later, regardless of interest rates), then you know that future Inflation is guaranteed.
And whether it is today or in two years, Bitcoin will react to all the new money supply and velocity in the system.