Dow Plunges 1,000+ Points! (Worse Fed Rate Hike Is Coming)

<strong>Dow Plunges 1,000+ Points! (Worse Fed Rate Hike Is Coming)</strong>

The markets react negatively to Jerome Powell’s comments regarding the upcoming Fed meeting, the Central African Republic passes a bill that greenlights and regulates crypto, and soccer icon David Beckham bends his way in the metaverse.

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Dow Drop

Let’s get it! The Fed and other central banks around the world handed out free money to investors, and those investors took that free money and deposited in their brokerage trading accounts, and then the brokerage firms said, “Hey, why don’t you take some more money in the form of low-interest loans since interest rates were so low?” That’s all starting to unwind. And one of the ugly things about liquidations is you don’t get to sell what you want to sell. You sell what you have to sell. So everything goes down. Gold goes down. Bonds go down. Crypto goes down. Everything goes down. Not just stocks. I wish I could come on here every night with a big smile and tell you that the markets are booming! And everything is going up into the right. Unfortunately, tonight, that’s not the case. But that doesn’t mean there aren’t lessons to be learned. Just like fighters are judged on the strength of their chins, vesting is just as much about minimizing losses as it is capitalizing on gains. Here’s the deal. The markets have been getting wrecked.

The Dow Jones is on a 4-week losing streak. Friday’s drop of nearly 1000 points was the worst since October of 2020. FAANG tech stocks, Facebook, Alphabet, Netflix, Google, Amazon, have lost $2.4 trillion since their 2021 all-time highs. SPX has dropped over 10% since the start of the year. If you’ve been paying attention, you know that Bitcoin has been following the SPX closer than ever. There has been over $300 million in crypto liquidations in the last 24 hours alone. Why all the bloodshed? The Fed plans to increase the interest rates at every meeting this year.

Their hawkish approach is proof that the battle against inflation is a double-edged sword, and both sides are bleeding. The next Fed meeting begins on May 4, and this one is most likely going to be worse than the 0.25 basis points increase we saw in March. Fed Chair Jerome Powell told CNBC, “It is appropriate in my view to be moving a little more quickly. I would say 50 basis points will be on the table for the May meeting.” He also said, “It’s absolutely essential to restore price stability.” He’s right about that. The US dollar has been being devalued for the past 40 years. Since it’s been inflated so much, and the free money from the pandemic injected a massive amount of money into the markets, the value of everything went much higher than it should have.

The current prices

The more they hike up the basis points, the more the prices will fall until we land on solid ground. Be sure to manage your risks and be comfortable developing a long-term mindset, especially for the time being. Let’s check in with the forward-thinking Frankie Candles for a quick market update. Let’s jump in and do a little market watch here. As we are pumping today, we got Bitcoin coming in at $40,205. Up about 1.6% for the day. Ethereum back over $3,000. Up about 2% on the day. Let’s check our top movers. Dogecoin pumping like crazy, up about 22% on the day off of that Elon Musk news about Twitter. We got Oasis Network up about 13.8% on the day. RUNE up 6% on the day LUNA up 5% on the day And Shiba Inu up 5% on the day Guys, with the bullish divergence on the 4-hour timeframe for Bitcoin, I am expecting that we could come up a little higher. I am looking for a possible rejection in the $41,000 level. 

Central African Republican

I’m not saying to develop a long-term mindset just because the prices are going down. I’m saying that because despite the volatility, crypto continues to tiptoe closer to mass adoption in all corners of the globe. On April 21, the Central African Republic unanimously passed a bill that gave crypto the green light.

Although they’re not adopting Bitcoin as legal tender like El Salvador, the bill legalizes the use of crypto and allows citizens to pay their taxes as well as business payments using the asset class. A big issue in Africa is that money is very difficult to send, considering 57% of their population is unbanked. Kiveclair founder Gloire went on to say, “The real implication for people is that they can now have access to currencies other than the FCFA while being protected by law, and transfer money at a lower cost.” Above all, they can carry out financial transactions without banks. Bullish news for Africa and the ever growing mass adoption of crypto. Is there bullish news in the market? 

DigitalBits

Well, looks like we’re having another Tom Brady moment in the metaverse. Not for that football. The other one. Soccer superstar David Beckham already entered the crypto space back in March when he became the brand ambassador for DigitalBits. Now that he has had a taste for the action, Beckham kicked it up a notch and is now entering the metaverse. Attorney Mike Kondoudis tweeted out, the international football star has filed three trademark applications hinting at plans for NFTs and digital tokens, for virtual clothing, footwear and headgear, as well as virtual performances and entertainment events. Following in the footsteps of a multitude of athletes and companies, Finbold reports, “NFT-related trademark applications had skyrocketed 400-fold in 2021 alone.” In 2022, an average of 15 registrations had been recorded daily. So, what if the prices are down right now?

 It takes time. Trust me, the perfect storm is brewing. Countries around the globe are greenlighting crypto as pop culture icons around the globe plant their feet in the metaverse. Even if this isn’t the bottom, 2022 is a year to accumulate. The crypto boom of the future is the goal. So set up that corner kick. Bend it like Beckham. That’s all I got. 

This article is a transcription of a video made by BitBoy Crypto

Original video: https://youtu.be/Sc0w8hwD9Zk