Fed rate hikes too small to have real long term impact for the markets

evilgreed

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Quote from: Yaunfitda on May 03, 2022, 03:49:05 PM

Not sure about the stock, but it seems the market has been shaken and weed out of weak hands again as the price goes to $37k and there could be more selling off with regards to this news.

We all know that the market is really sensitive with this kind of news, although as you have said, it is small, but I guess it will still have impact on the market short term as we might see another all time lows in the coming weeks.

It even has gone to as low as the 36k area which is very scary in the point of view of weakhanded people. Right now, most of these weak hands have already been shaken off while others are still holding on to their dear life. There are others though that have learned a bit already and are now looking for better entries. I Think the next few days from the writing of this post will determine whether many more weak hands will sell or many people will jump (back)in. In contrast though, I believe that a week from now or at least till the middle of this month, we'd be seeing some bullishness again.

el kaka22

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Taking bitcoin all the way down to 37k is not really that much a weak hand or not a real long term impact issue, it is a short term exponential situation that impacts the future as well. Think about it this way, if it wasn't moving then we would be closer to 40k now, and we could have gone up, and in a month or two we could have been at 48k walls again.

Now instead of that, we will just stay here for a while, or even crash harder, and then going to 48k again will take many more months. Not that it won't, it will break ATH eventually one day let alone 48k but it just makes it a bit of a further down the line instead of making it anytime soon.

kidbounty

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Quote from: 325btc on May 03, 2022, 03:20:53 PM

For real economy yes it will slow down but markets as stocks crypto fed rate hikes sounds like shake off the weak hands becouse now when investors hear about rate hikes tgey might many of them sell as panic.
Rate hikes are likely just shake down the weak hands

I don't agree. because this can have a big impact and in the long term. Just look at the current crypto market, the market crashes, bitcoin crosses a support point, the altcoins fall very deep, and the stock market is also impacted by this. In fact, the increase in interest rates has had a big impact.

Mahanton

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Quote from: aprilnot on May 05, 2022, 04:31:18 AM

no impact whatsoever upon this time. if you look at the crypto market it doesn't seem to be affected, this doesn't match the predictions of most people who say rising interest rates will make the crypto market dump. the fact is that when the FED set interest rates, bitcoin and all altcoins experienced a flash pump to date.

Since from the start i have never been tending to correlated institutional events came from these casual markets that we've known through ages or for how many years in speaking with crypto market which
i dont see for it to give any effects from time to time here on crypto space.It could move without any attaching events that do happen on other markets.Some do really make out some connection
in some circumstances but we dont actually know behind whether it did really give any effect or not.

ChiBitCTy

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Yesterdays Fed announcement of increasing interest rates by half a perfect was just a start. They have already announced that they plan on announcing more rate hikes to help combat inflation in due time, but it’s simply not something you can just Willy nilly keep increasing, you have to do it in a proper manner, which I’d like to think that they are.

sunsilk

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Quote from: 325btc on May 03, 2022, 03:20:53 PM

For real economy yes it will slow down but markets as stocks crypto fed rate hikes sounds like shake off the weak hands becouse now when investors hear about rate hikes tgey might many of them sell as panic.
Rate hikes are likely just shake down the weak hands

In relation to the crypto market.

It's speculative and when there news that are also affecting the other markets, some whales would their own moves that might affect the market. Although there's no direct impact but it's the whales move that shall move the market.

Yeah, it could really shake the weak hands and that's what we're seeing sometimes when the market is starting to plummet.

aprilnot

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no impact whatsoever upon this time. if you look at the crypto market it doesn't seem to be affected, this doesn't match the predictions of most people who say rising interest rates will make the crypto market dump. the fact is that when the FED set interest rates, bitcoin and all altcoins experienced a flash pump to date.

Moneyprism

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it's natural to make investors panic because with the increase in the FED rate, there will be many sectors that will be affected, but in my opinion it will only last in the short term

be.open

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Even such a modest increase in the key rate is very painful for the US, because it increases the cost of servicing a huge external debt by a couple of hundred billion dollars a year. Therefore, it is foolish to expect sharper and more decisive measures from the Fed to curb inflation, even if the current measures look clearly insufficient.

hugeblack

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Changing monetary policy will not be abnormal, but rather gradual, as interest rates will witness a change in the long term.
We may witness 5 interest rate hikes during this year, although I am skeptical about that due to the impact on oil prices.

As for the impact on cryptocurrencies, the matter needs a lot of details, as we see that the price of 40k is still very low, and we see that some are still betting on the possibility of increasing the price above 50k.

avikz

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Quote from: 325btc on May 03, 2022, 03:20:53 PM

For real economy yes it will slow down but markets as stocks crypto fed rate hikes sounds like shake off the weak hands becouse now when investors hear about rate hikes tgey might many of them sell as panic.
Rate hikes are likely just shake down the weak hands

Today's Indian Central Bank has increased the interest rate by 40 points. The Indian stock marked immediately started bleeding immediately after that. That will be the story in every major market for next few weeks. The inflation is a worldwide problem and every major economy will look forward to increase interest rate to such out the extra money from the economy so that people started keeping a check on their spending habit. So that the demand goes down and so that the supply and at the end the price comes down. That's a major weapon against inflation.

Now it's a good time to buy bitcoin because now investors will look for alternative assets like this. This has always been a trend with precious metals whenever the interest rate increases. Same would happen with bitcoin as well.

fiulpro

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It's not just one government perse there are a lot of governments all around the world who are using the hike to make sure the economy is cooled down. There are certain countries where they are raising the interest rates to 1% or 0.5%. The fed is trying to do something to help but I don't think that is the right way to go since the inflation is already on the rise and is getting worse considering the problem in the supply of oil which is making the market worse as well. Interest rate hikes is not really an essential marker for the people who don't have that much bank balance.

Quote from: takngantuk on May 04, 2022, 03:11:11 AM

but short term enough to make a fuss in the market. today alone bitcoin fell to 37k in just a short time, although it was able to come back eventually. but the impact of this is that the altcoin market is very bad. almost all altcoins crashed at that time. This means that rumors about an interest rate hike are still very worrying at this time. the stock market also experienced a decline, although not too big. so this is the most important moment because during the announcement of the rate hike the market will be very volatile.

I don't think that would effect it a lot since there were some news along march as well .

takngantuk

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but short term enough to make a fuss in the market. today alone bitcoin fell to 37k in just a short time, although it was able to come back eventually. but the impact of this is that the altcoin market is very bad. almost all altcoins crashed at that time. This means that rumors about an interest rate hike are still very worrying at this time. the stock market also experienced a decline, although not too big. so this is the most important moment because during the announcement of the rate hike the market will be very volatile.

Yaunfitda

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Not sure about the stock, but it seems the market has been shaken and weed out of weak hands again as the price goes to $37k and there could be more selling off with regards to this news.

We all know that the market is really sensitive with this kind of news, although as you have said, it is small, but I guess it will still have impact on the market short term as we might see another all time lows in the coming weeks.

325btc

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For real economy yes it will slow down but markets as stocks crypto fed rate hikes sounds like shake off the weak hands becouse now when investors hear about rate hikes tgey might many of them sell as panic.
Rate hikes are likely just shake down the weak hands

Topic: Fed rate hikes too small to have real long term impact for the markets (Read 102 times)