How Powell's decisions shape the future of the economy and cryptocurrencies?
Hello friends of Project HOPE, this week has been crucial in terms of macroeconomic news, and yesterday, Friday, August 23, there was an important meeting of the main directors of the most important central banks in the world ,and yesterday Jerome Powell spoke precisely, who is the president of the United States Federal Reserve, who definitely continues to be the one who sets the tone in the market in this regard, especially because the US dollar is the main currency globally.
This has its nuances, of course, because it makes the global economy practically globalized, but if this is the case, then everything is largely subject to what the US does with its economy, and from that point on, the global economy reacts in favor. or against. And this was until recently defining only traditional markets, but currently it is also defining many things in the crypto environment.
All this is due precisely to the fact that Bitcoin and Ethereum ETFs are moving a large amount of money, capital that is from large investment funds and these are traditional, and are governed by what are the monetary policies of the US, considering a lot what could happen in the future based on the FED's decisions.
This goes against the basis with which Bitcoin, and cryptocurrencies in general, were created, but it seems that there is not much we can do about it, things are as they are and that's it, we just have to learn to move in this direction and try take advantage of it.
The thing is that yesterday, Jerome Powell, in his speech, announced that the lowering of the interest rate will happen soon, and this has a great impact in terms of the impact on the amount of money flow, it just has to wait. this flexibility, but based on the news and what will happen, there was a positive reaction from the traditional market, as well as the crypto market.
The drop in the interest rate means that more money will begin to circulate, and this will facilitate the activation of the economy, including investment in different assets such as stocks, ETFs, and even cryptocurrencies directly, this has a lot of power in relation to which means an increase in price, because demand from investors increases. And if we also consider that the supply of BTC is becoming less and less, this means a very good projection for the future.
Obviously, this is not something that happens overnight, much less do I intend for this post to be an investment recommendation, each person must make their respective investment and invest based on their reality, if they decide to do so. I hope you like this post, I say goodbye.
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