- Investors will be concentrated on Central Bank of US as Fed regulators are anticipated to increase benchmark interest rates aggressively.
- Leading US stock indexes witnessed subsequent losses as the week finishes off, and Nasdaq composite witnessed its worst 4 months initial performance since 1971.
- Cryptocurrency markets didn’t have a very good week either, as crypto economy has fallen 8.99% against USD since April 25.
A number of researchers, economists and monetary institutions anticipate the Federal Open Market Committee (FOMC) will elevate the hike rate in the upcoming week in an aggressive pattern.
As per a report by a news agency, US Federal Reserve regulators are preparing to deliver a series of aggressive interest rate hikes at minimum until summer to face off with hot inflation and soaring labor costs.
Additionally, the report says, Dutch multinational banking and financial services corporation ING group thinks that a large hike is anticipated this Wednesday. ING anticipates Jerome Powell (Fed Chair), and FOMC to make an announcement regarding a 50 basis point rise.
Capitulating Wall Street, Gold Reaping Macro Perks
Meanwhile, when Wall Street called the day off on Friday, all prime US stock indexes had experienced a blood bath during intraday trading sessions. NYSE, S&P 500, Dow Jones Industrial Average, and Nasdaq, all fell subsequently for the beginning of the week.
Gold reaped the perks from the storm during the week’s end and rare metal saw a stable increase against USD heading into weekend as well.
As of this writing, Gold was exchanging hands at $1897.35.
Bear Market Vibes
Cryptocurrency economy experienced a downfall too this week and markets were correlated with the equities market. Michael Van De Poppe, CEO and Founder of eightglobal(dot)com posted a tweet regarding crypto market fears.
He said that, amount of market fear at present because of upcoming FED meeting can be compared to 2018’s bear market. That states a lot for Bitcoin and markets.
As of this writing, bitcoin was trading below $38,000.
Since 25th April, the entire cryptocurrency market faced a slippage from $1.967 Trillion to today’s $1.71 Trillion. Bitfinex market researchers said that Bitcoin is consolidating as buyers stay on the sidelines.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.