Crypto is at a make or break point.

I have no idea how crypto will start this week.

This week my focus will be on how other markets react, they will give a far clearer view of market sentiment.(These only update in Forex/stock trading hours, not weekends)

Huge impact Tuesday-Wednesday.

On Tuesday and Wednesday Jerome Powell will testify about the US economy and Policy before the financial services committee

Powell spoke last week in Europe and this will likely echo some of that, this weeks questioning will be far more in debth and the questions are not revealed to Powell in advance, how he responds will be key and it will create volatility.

I do a lot of research into market risks, there is a lot of shit going on under the surface, high risk stuff like corporate banks(Mostly from Japan) being heavily invested in high risk CLO (Collateralized loan obligations)

"As"(see image) are starting to fail and some banks are heavily invested in Bs or BB,its russian roulette.

*Basically like the big short movie, only now in pooled American corporate debt*

For many reasons this investment in high risk CLO tranches is very worrying, it would take to long to explain but it is hiding a lot of underlying risk and it will probably not end well.

Many signals like the Sahm rule(unemployment) and the Yield curve already show a recession is imminent.

The problem with "imminent" in regards to an economy is that could mean 3-6 months.

It doesnt matter what the data is doing, it matters what the market is doing.

If Powell gives bullish remarks in the next few days then that is what will effect the market short term, i think it has reached a point where he will be pushed to give clarity on a September cut, i think he wont be allowed to say "we need more data" like he has for 5 months.

On Thursday we have CPI and Unemployment which will also cause volatility.

I will be closely monitoring various charts outside of crypto in the coming week to get more clues, as always i will post and keep you updated.

Peace.

#TheWolfThatWins #Market_Update #CPIAlert #US_Job_Market_Slowdown