In the Financial Services Committee of the House of Representatives last night, Federal Reserve Chairman Powell delivered a related speech, which was interpreted by the market as positive, but the whole process was not a one-way positive, and there were still ambiguities.
Powell said that inflation will rise in the next few months and then flatten out. If it rises too much, the Fed is ready to adjust policy. Long-term price expectations are upward, in line with the target. Inflation has risen markedly and will remain "remain high" in the coming months. The Federal Reserve's Beige Book released on Wednesday showed that the Federal Reserve believes that the US economy continues to recover, with higher-than-average price increases.
If you only stop here, it can basically be interpreted as negative. After all, if the economic recovery is smooth or inflation rises significantly, it is obvious that the pace of monetary policy must be tightened.
Powell noted that the Fed still had a long way to go to make full employment and price stability benchmarks for "significant progress." He did say that Fed officials are at least talking about reducing the pace of asset purchases. Inflation has risen markedly and is likely to continue to rise in the coming months before falling back. But he stuck to his oft-stated view that the current price surge is temporary and that inflation will slow as things return to normal. Economic conditions have improved, but he said the job market remains well below pre-pandemic levels. The U.S. economy needs to improve further before the Fed changes its ultra-loose monetary policy.
When Powell's words fell, U.S. stocks rose moderately, U.S. bond yields, the U.S. dollar fell, and gold rose sharply, which also stimulated the cryptocurrency market to a certain extent.
The current attitude of the Federal Reserve is obviously a barometer of the world's financial markets, and monetary policy is the top priority, and Powell has also given his attitude to the current market inflation. Inflation has risen and will continue to rise, but there will be a fall , and inflation rises in time, but it is only temporary, and monetary policy should not be changed in a short period of time.
At the same time, there is another element of worry at the moment, with markets also closely watching the global spread of the delta variant of the coronavirus, which on Wednesday forced Australian officials to extend a lockdown in Sydney and South Korea to tighten anti-epidemic restrictions measure. According to data released by the United States on Tuesday, the average number of new confirmed cases in the United States in the past 7 days was about 19,455 per day, an increase of 47% from the previous day's data, the largest weekly increase since April 2020.
This is undoubtedly an uncertain place for the future economy. If the mutant virus continues to spread, it will not only be challenging for the recovery of the economy, but it will even hit the economic situation that has been fruitful in the past period of time. Although it is cruel, after this situation occurs, it is indeed an important benefit to the cryptocurrency market. Therefore, the follow-up situation is still relatively important.
Back to the market, the market is still going down today. In the morning, it made a small wave of highs and broke through 33,000 US dollars, but it did not stand firm and began to fall continuously. The lowest position was around 32,000 US dollars.
From a technical point of view, the medium-term indicators still need to pay attention to this MACD. Since the high level fell, no matter how it rebounds later, the MACD has not stood on the 0 axis, which shows that this is still a slightly weak state. Once it stands in the middle After orbit, that could mean a revival of the middle orbit.
Risk warning: Investing in digital currency is a high-risk investment behavior. The content of this article is for reference only and does not constitute investment trading advice. Investors are requested to invest rationally: investment is risky, and caution is required when entering the market.
Risk warning: Investing in digital currency is a high-risk investment behavior. The content of this article is for reference only and does not constitute investment trading advice. Investors are requested to invest rationally: investment is risky, and caution is required when entering the market.
