VOL 4 Issue #20 December 2022 #BTC AstroCrypto Report

VOL 4 Issue #20 December 2022 #BTC AstroCrypto Report 

Disclaimer: * Please note I am not a financial advisor, this report should not be taken as financial, investment or trading advice. Bitcoin is a volatile, high risk asset. The author assumes no responsibility or liability for your investment decisions or any financial gains or losses based on the information in this report. This report is based on probability, Markets do not always follow our signals. Do your own research, technical analysis and due diligence before trading or investing in Bitcoin or any other assets !

 

December Intro: Macro Risk Eases And Markets Turn Bullish (for now)

Inflation
The good news the most recent CPI  inflation data came in slightly lower the the previous months leading many to believe inflation may have finally peaked, this caused a mild stock rally over the previous several weeks, which continues this week on "Dovish" statements from Powell. The other inflation index the CPE also came in slightly lower Thursday. Of course traders and investors will be watching the December 13th CPI data very closely for confirmation that the inflation trend continues down, if Dec 13 CPI comes in lower again we expect Stocks and Crypto to continue to rally in the short term. 

However inflation remains high, and many economists and the "inverted yield curve" in the Bond market are predicting an imminent recession in 2023.

The Fed
Fed Chair Powell spoke at a Brookings Institution event Wednesday and gave what some analysts are calling a more "Dovish" speech, saying that the Fed will make smaller rate hikes going forward. Markets saw this as bullish and rallied hard. But make no mistake, this is not a "Fed Pivot", Powell has said the Fed will continues to raise rates well into next year, just not as sharply. 

However at this point it does seem possible that continued rate hikes may be "priced in". The next Fed meeting follows the day after CPI on DEC 14th and they are expected to raise rates again by .50 this time. The main question is can The Fed tame inflation without causing a recession, the so called "Soft Landing" ? And let's not forget that The Fed has been….