Interpretation of cryptocurrency market on Aug 26, 2022
The market continues to maintain a small oscillation. The market lacks hot spots and continues to maintain the previous operating ideas.
Several sets of economic data were released last night. For example, the number of unemployment claims, the second quarter GDP, etc... In summary, employment is good, and GDP slowed down, which is positive. The market did not reflect much. But tonight the market will be difficult to calm. In addition to consumer spending, confidence index, and these economic-related data released, the Federal Reserve Chairman Powell will also make an important speech tonight.
In the current economic upturn, inflation remains high. The Fed is in a position to continue to raise interest rates sharply. The relevant data needs to fall for at least one consecutive quarter to determine whether inflation has been controlled. But it is currently only one month. Moreover, oil-producing countries intend to cut production to intensify the conflict between Russia and Ukraine. Soon enter the winter heating season and a series of other backgrounds. The CPI data is challenging to see a continuous decline, so the basis for the existence of a bear market still exists.
But the impact of these fundamentals of economic data is long-term and subtle. Not as fast and direct as the event shock. If Powell falls short tonight, the market may still rebound quickly. So for this kind of uncontrollable event, beforehand heavy bets are not advisable. Avoiding low positions or following in time after it is clear is more reasonable.
Several sets of economic data were released last night. For example, the number of unemployment claims, the second quarter GDP, etc... In summary, employment is good, and GDP slowed down, which is positive. The market did not reflect much. But tonight the market will be difficult to calm. In addition to consumer spending, confidence index, and these economic-related data released, the Federal Reserve Chairman Powell will also make an important speech tonight.
In the current economic upturn, inflation remains high. The Fed is in a position to continue to raise interest rates sharply. The relevant data needs to fall for at least one consecutive quarter to determine whether inflation has been controlled. But it is currently only one month. Moreover, oil-producing countries intend to cut production to intensify the conflict between Russia and Ukraine. Soon enter the winter heating season and a series of other backgrounds. The CPI data is challenging to see a continuous decline, so the basis for the existence of a bear market still exists.
But the impact of these fundamentals of economic data is long-term and subtle. Not as fast and direct as the event shock. If Powell falls short tonight, the market may still rebound quickly. So for this kind of uncontrollable event, beforehand heavy bets are not advisable. Avoiding low positions or following in time after it is clear is more reasonable.