Things are crazy right now. The market is, for some reason, bouncing today. We can see here that it is green across the board. We are going to be discussing exactly what is going on right now. Where I am looking, what I’m watching, and, of course, where I think the market is going to go next.
Let’s jump straight into it. As we can see here, the Crypto Bubbles are green across the board, Aave up 15%, Matic – 18%, CVX – up 20%, and CRV up 20%.
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If we do head to Coin Market Cap, we can see here that across the board, essentially, the market is up around 2%. We got Bitcoin, Ethereum, and a bunch of our other altcoins. Solana is up 5% today. The market is definitely seeing some sort of relief now.
Moving on to what is happening today. First of all, in the last couple of days we had information that the White House was warning that CPI inflation numbers would be elevated, so the overall market was already preparing for the worst case scenario. That’s why we are seeing this huge sell-off. When the news came out that the CPI data was actually way higher than we expected at 9.1%. The market did see a brief dump here and now we are seeing a bounce.
First of all, breaking CPI shows once again that economists have no idea what’s going on. As you see here, these are some of the biggest economists on earth, all predicting completely wrong numbers. I wanted to show this to you because, remember, nobody, whether or not it’s someone on YouTube, whether or not it’s an economist that works for HSBC, or it’s your friend down at the pub, nobody really knows what’s going on. That’s why you have to do your own research and come up with your own ideas about what is going on.
On top of that, I posted this tweet:
This is what we’ve seen time and time again, and now this is starting to play out. We’re seeing this relief rally here. People were preparing for the worst case scenario now a buying the news situation is happening. I do think that this could come up. We could even break this higher high, convincing a lot of people that there is a new bullish trend starting. People will go far. This is essentially what the market-makers desire.
If we do bounce up here, I do think that we will have a pullback coming into the market very quickly after that. As you can see here, when we got our last CPI data, we did drop from here all the way down to 41%.
I don’t know if it’s going to be that harsh again because the market is much more prepared for this, like mentally and emotionally, but I do think we’re going to have a job. I think we’re going to have a relief rally and then we’re going to have a dump into the market. The reason why I think we’re going to have this dump is because of this information coming.
First of all, we have big companies beginning to report their earnings right now, so this has already started and it’s going to continue till close to the end of the month. Big companies reporting most likely bad earnings are going to be bad for the overall market, in turn affecting cryptocurrency. That’s number one. That’s the number one reason.
Number two, on July 26 to July 27, we’re going to have the information on where the Fed is raising the interest rates. People are expecting a 1% raise this month. If it is a one percent raise, this will be very negative for the market. The market is overall expecting around 75 basis points to 1%, so this again will affect the market when the news comes out.
Then on the 28th of July, we’re going to find out once and for all officially if we are in a recession. I know a lot of you think we are already in a recession and it does very much seem like that, but the official word will come out on July 28th. So those are three huge things that are happening all this month while bitcoin is currently in a little bit of a relief rally. That’s why I think this is not going to last now.
What am I doing in this market right now? Dollar cost averaging into bitcoin, of course, and I am trading short term in this market. With all of that said, I do hope I provided you with some value today.
[This article is a transcription of a video made by Conor Kenny]
[Original video: https://youtu.be/9Bklc51rZG0]