Bitcoin and Stocks Crashing (Fed Tightening)



Published
Join the Trader University email list:
https://www.trader.university/email-list

In this video, I discuss how the Fed's more hawkish rhetoric is causing a sell-off in stocks, Bitcoin, and other "risk assets."

Jerome Powell has been given a free pass, through his renomination to the Fed, to pursue a more hawkish policy, in an effort to keep gas prices and rents from exploding further, causing political fall-out.

It's unlikely that this hawkish policy will be able to continue for very long before something in the system blows up. Perhaps it's a stock market crash (that hurts tax receipts and consumer spending), or perhaps it's a back-up in Treasury yields while stocks are still selling off.

Either way, the Fed will be forced to reverse course and start up the money printers again on full throttle in order to clean up the mess. The financial system is too levered to be able to handle tighter monetary policy, as it still could in 1980 under Paul Volcker, when debt/GDP levels were only 30%.

Bitcoin will continue to grow and take market share, regardless of Fed policy.

Not investment advice! Consult a financial advisor.

US debt clock:
https://www.usdebtclock.org/

Chart of debt/GDP:
https://fred.stlouisfed.org/series/GFDEGDQ188S

Higher rents and gas prices hurting Biden's poll numbers:
https://www.politico.com/news/2021/11/10/rent-inflation-biden-520642
https://www.politico.com/news/2021/11/17/gas-prices-biden-inflation-522777

Powell gets another term:
https://www.whitehouse.gov/briefing-room/statements-releases/2021/11/22/president-biden-nominates-jerome-powell-to-serve-as-chair-of-the-federal-reserve-dr-lael-brainard-to-serve-as-vice-chair/

Then Powell gets hawkish:
https://www.bloomberg.com/news/articles/2021-11-30/powell-says-appopriate-to-weigh-earlier-end-to-bond-buy-tapering
https://www.wsj.com/articles/powell-warns-omicron-variant-could-worsen-inflation-boosting-bottlenecks-11638280800

Probabilities of Fed hikes:
https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html

Fed funds chart:
https://fred.stlouisfed.org/series/FEDFUNDS

Fed balance sheet:
https://fred.stlouisfed.org/series/WALCL

Solana Billionaire VC's Are Laughing At You:
https://www.youtube.com/watch?v=nBHH0k8EOHE&ab_channel=TraderUniversity

Check out my online trading courses:
https://www.trader.university/join
Use this secret coupon code to get a discount: YT99

Check out my Amazon best-seller, "A Beginner's Guide to the Stock Market":
https://www.amazon.com/Beginners-Guide-Stock-Market-Everything-ebook/dp/B07S31TBF5

I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos.

My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.

#Stocks
#Bitcoin
#Fed

Disclaimer
Neither Trader University, nor any of its directors, officers, shareholders, personnel, representatives, agents, or independent contractors (collectively, the “Operator Parties”) are licensed financial advisors, registered investment advisors, or registered broker-dealers. None of the Operator Parties are providing investment, financial, legal, or tax advice, and nothing in this video or at www.Trader.University (henceforth, “the Site”) should be construed as such by you. This video and the Site should be used as educational tools only and are not replacements for professional investment advice. There is a high risk in trading.
Category
Cryptocurrencies
Be the first to comment