The Consumer Confidence data has just been released and the shock was significant: 84.5 points, against an expectation of 90.6. We are seeing the lowest level in months, confirming a trend of free fall in American optimism.
Why should you pay attention to this?
USD Falling: The market manual is clear: bad confidence data = weaker dollar. With the BTC/USD pair being the main driver of the market, a dollar losing steam is the ideal scenario for Bitcoin to seek new resistances.
Fed pivot: If the consumer stops spending, the economy slows down. This puts the Fed in a tight spot to lower interest rates. And we know: liquidity in the system is the favorite fuel for cryptos.
Inverse Correlation: Looking at the recent history of the images I posted earlier, each "miss" (data below expectations) has served as a trigger for positive volatility movements in the crypto market.
⚠️ Conclusion: The macro scenario is screaming "slowdown". In the short term, expect volatility. In the medium term, if the dollar continues to bleed because of this data, Bitcoin could be the big winner.
What is your strategy for today? Buy the dip or wait for the dust to settle? Comment below! 👇