Powell’s Upcoming Speech - Volatility expected, Be careful!

Welcome back,

In about two hours, we are going to hear from Powell, the Chairman of the Federal Reserve. I know this is not an official FOMC meeting, but speeches like these are very important because they give us clues about what is going on in Powell’s mind and how he might react in the upcoming FOMC meeting. That is why this event is worth paying close attention to if you are involved in any financial market.

Powell’s speech is not just important for the stock market but also for the crypto market. His words can shift the sentiment very quickly. For this reason, I am going to stay away from trading for the next few hours. The market can turn highly volatile around such events, as a lot of people will try to create content, share predictions, and speculate on what Powell is about to say.

Maybe he will mention another 25 basis point rate cut, or maybe he will just hint at the possibility. Either way, anything he says has the potential to move the markets sharply. This is why I believe the best strategy right now is to simply stay away from trading, avoid unnecessary risks, and remain focused on the speech itself.

The recent market crash, where the majority of tokens fell by 10-15% and some even dropped by nearly 20%, was an opportunity to inject more liquidity into our existing positions. I had also shared earlier how we should react in such situations, and I hope many of you benefited from that blog.

Source

Now we are moving into another important event. The speech of Powell is going to have a strong impact on the market. If the speech turns out to be in favor of the financial markets, then we can probably consider the recent crash as the bottom for the near term.

But if the speech is negative, or even neutral with hints of anything that can harm the markets, then we might see another crash. In that case, Bitcoin could fall further, possibly down to around $109k. Personally, I strongly believe that this will not happen, but let us see what Powell has to say today so that we can understand the situation better.

I will also share my thoughts here on the threads, so stay tuned. I am not going to keep you waiting to know what Powell is thinking about, but I still encourage everyone reading this to listen to the speech themselves. That way, you can directly understand his tone and his views on the upcoming FOMC meeting and the decisions that might follow.

Source

How are you looking at the market right now? You can share your thoughts with me in the comments. Are you someone who is ignoring all these events and just focused on the market with the belief that we are going to see a massive pump in the next few months? If yes, then that is the mindset of a long term investor.

But if you are a trader who trades on a short term basis or even with slightly longer time frame gaps, then I think this event is very important for you. So stay alert, follow the updates, and make your moves carefully.

Thank you and happy reading everyone.

Posted Using INLEO