A FEW BIG FACTORS DRIVING THE MARKET

There are a few big factors that have been driving the risk of attitude in the markets this year. The biggest one is the probability of a rise in global liquidity which initially led to China back in November which mark a global liquidity bottom. China was shortly followed by Japan and then by the United States with massive central bank intervention in the markets over the last four to five months. Even though the United States did lead this global liquidity rise, they launched the bank's term funding program in response to the banks' failure. The program backstopped all US bank's deposits and guaranteed to provide money to struggling regional banks that are currently holding bonds and mortgage-backed securities at unrealized losses like 600 billion dollars with unrealized losses right now. They then extended that to bank-term funding out of central banks in Canada, the UK, TH EU, and Japan.

---

It means that the FED is ready to bail out everyone. This will require a ballooning of the balance sheet which is already happening in the massive printing of money. That is one big piece of a puzzle that is the big factor driving the market right now. The other big factor is the FED in particular how they are going to continue to react to falling inflation. While the FED has continued to hike up interest rates without any kind of stopping at all, there is heavy speculation the regular hike will be ending soon. Many people are expecting to see them raise the rate one more time. That doesn't mean an immediate pivot now, they are going to start cutting rates, and the rate could stay high for the month.

---

The FED has said they expect to not cut the rate in 2023. Stopping the rate couldn't be the fuel needed to help markets perform well for the remainder of the year. The other factor that has been fueling speculation markets is the banking crisis itself. So far three banks in the United States have collapsed with many more still teetering on the edge of the cliff. Fears continue to run rampant that more banks and chaos could be coming about. The one positive side effect which comes out of the banking crisis is that people are starting banks and they are not trusting the dollar as much either which we see is being debased by the Central Banks. There's even fear about his continued status as a global reserve currency with the BRICS groups rising. Of course, a strong distrust in Banks is fueling a safe haven narrative for the rally. What is driving the market is all the big macro stuff. Cryptocurrencies don't live in a vacuum even if we like them to. These markets rise and fall with the tides of global money coming in and going back out.