🎙 How does Powell's speech affect the market?
Powell = Chairman of the Federal Reserve = the person who determines the fate of the dollar, interest rates, liquidity… and thus the fate of all cryptocurrencies.
1️⃣ If his words lean towards tightening (Hawkish)
It means:
The economy is strong
Inflation is still concerning
The possibility of raising interest rates or delaying a reduction
❌ The result:
The dollar strengthens
Liquidity escapes from risky assets
Currencies drop (especially BTC and ALT)
2️⃣ If his words lean towards easing (Dovish)
It means:
Inflation is under control
The economy needs stimulus
The possibility of lowering interest rates or expanding liquidity
✅ The result:
The dollar weakens
Liquidity enters the market
Currencies rise sharply
🎯 What did Powell say today exactly and why does it matter to you as a trader?
His last words today were:
The Fed will make a decision **after gathering data**, meaning it's taking its time.
Inside the Fed, there is a division: some want to lower interest rates, and others do not.
They will issue new forecasts today regarding inflation and growth… and this is the most important moment the market is waiting for.
💥 Why is it important?
Because the market is now "paused" and tense waiting for:
Will Powell say something leaning towards lowering interest rates? Or not?
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