Main Takeaway: FOMC, Not FOMO
Wednesday evening US time the FOMC will be having its almost monthly meeting – and it’s predicted that Jay Powell will announce a 75 bps rate hike to quell inflation. As is widely reported, US inflation has drawn widespread concern around the world and has set off a trigger of global rate hikes, resulting in many currencies falling against the Dollar. From this, we’ve seen a departure from “risk-on” assets such as equities and cryptocurrencies.
Key Stories: S&P 500 Bear Market & 3AC
On Monday, the S&P 500 dumped again – nearly all across the board. An interesting chart has been going around that shows only Mcdonald’s showed positive returns that day. The index is now down more than 20% from its most recent record closing high of over 4,700. Many are saying the bear market began on January 3rd.
Pictured below is a graph depicting the S&P 500’s yearly returns, and as we can clearly see, so far in 2022 it’s deep in the red. Therefore, investors and traders should carefully watch the economy and minimize their risk.
(Image source: Jennifer Walsh)
Besides the traditional markets, Three Arrows Capital (3AC), one of the largest crypto VCs is being liquidated and is reportedly insolvent. Because of this yet-to-be-verified news, a Bitcoin and Ethereum selloff is currently happening. $20,000 for Bitcoin and $1,000 for Ethereum are two key psychological levels to watch.
The Good News: Today’s Top Gainers
The best performing cryptos as of this writing on the 24 are: