THE MOST OBVIOUS BULLISH INDICATOR

While increases in interest rates are generally bad for crypto and risk asset like stock and crypto, they have been a lot more major positives coming from Jerome Powell in that FOMC meeting, and many investors are more riled up to take with it new stance that it looks like it is changing to. Jerome Powell is more bullish to the point that in hours following the end of the FOMC meeting, the crypto market cap had actually increased by over 40 billion dollars. Although the last interest rate hike was at about 50 basis points, the time was only 25. The most obvious bullish indicator from this FOMC meet is the fact the federal fund rate increase are not just high as we expect them to be.

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Since the middle of 2022, the federal reserve kept bumping up the interest rate by 75 basis point which is already considered extremely aggressive. Luckily for investors, the last FOMC meeting of 2022 had showed that the federal reserve slowed down their rate hike and only increased it by 50 basis point and then, for the first FOMC meeting for this new year, the interest rate hike had decreased to 25 basis point. This year made investors believe that the federal reserve has a much more optimistic outlook for the future and might even decrease interest rate goals for this year of 2023.

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For the first the since inflation had reached that 40 years that we have all gotten through, Jerome Powell has now seemed to be more confident and dovish as he spoke. The main reason why this time around even though the rate has gone up and the market decided to pump was because it seems like things might be turning for a better scene. This is the beginning for us to see less quantitative tightening measures and it might seem like interest rates may turn around this year which could put us back in the same scenario as what we have seen before in the bull market.